The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, has reported a 5.5% annual gain in October, remaining unchanged from the previous month. The 10-City Composite annual increase came in at 4.7%, down from 4.9% in the previous month. The 20-City Composite posted a 5.0% year-over-year gain, down from 5.2% in the previous month.

Las Vegas, San Francisco and Phoenix reported the highest year-over-year gains among the 20 cities. In October, Las Vegas led the way with a 12.8% year-over-year price increase, followed by San Francisco with a 7.9% increase and Phoenix with a 7.7% increase. Six of the 20 cities reported greater price increases in the year ending October 2018 versus the year ending September 2018.

Before seasonal adjustment, the National Index posted a month-over-month gain of 0.1% in October. The 10-City and 20-City Composites did not report any gains for the month. After seasonal adjustment, the National Index recorded a 0.5% month-over-month increase in October. The 10-City Composite and the 20-City Composite posted 0.5% and 0.4% month-over-month increases, respectively. In October, nine of 20 cities reported increases before seasonal adjustment, while 18 of 20 cities reported increases after seasonal adjustment.

"Home prices in most parts of the U.S. rose in October from September and from a year earlier," says David Blitzer, managing director and chairman of the Index Committee at S&P Dow Jones Indices. "The combination of higher mortgage rates and higher home prices rising faster than incomes and wages means fewer people can afford to buy a house.”

Home prices are up 54%, or 40% excluding inflation, since they bottomed in 2012. Reduced affordability is slowing sales of both new and existing single-family homes. Sales peaked in November 2017 and have drifted down since then.

"The largest gains were seen in Las Vegas where home prices rose 12.8% in the last 12 months, compared to an average of 5.3% across the other 19 cities,” said Blitzer. “This is a marked change from the housing collapse in 2006-12 when Las Vegas was the hardest hit city with prices down 62%."

After the last recession, Las Vegas diversified its economy through the addition of a medical school, becoming a regional center for health care, and attracting high-technology employers. And the results are that employment is increasing 3% annually, twice as fast as the national rate."

U.S. house prices rose in October, up 0.3 percent from the previous month, according to the Federal Housing Finance Agency seasonally adjusted monthly House Price Index.

The previously reported 0.2 percent increase in September remained unchanged. The FHFA monthly HPI is calculated using home sales price information from mortgages sold to, or guaranteed by, Fannie Mae and Freddie Mac. From October 2017 to October 2018, house prices were up 5.7 percent.

For the nine census divisions, seasonally adjusted monthly price changes from September 2018 to October 2018 ranged from a drop of 0.6 percent in the South Atlantic division to 1.4 percent in the Pacific division. The 12-month changes were all positive, ranging from 3.3 percent in the Middle Atlantic division to 8.5 percent in the Mountain division.

Also, the FHFA Index recorded an increase in mortgage rates for November.

In the U.S. interest rates on conventional purchase-money mortgages increased from October to November, according to several indices of new mortgage contracts.

The National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders Index was 4.86 percent for loans closed in late November, up 11 basis points from 4.75 percent in October.

The average interest rate on all mortgage loans was 4.82 percent, up 10 basis points from 4.72 in October.

The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less was 4.99 percent, up 12 basis points from 4.87 in October.

The effective interest rate on all mortgage loans was 4.91 percent in November, up 10 basis points from 4.81 in October. The effective interest rate accounts for the addition of initial fees and charges over the life of the mortgage.

The average loan amount for all loans was $318,600 in November, up $3,500 from $315,100 in October.
 

Fannie Mae and Freddie Mac have approved China Oceanwide Holdings Group Co.’s acquisition of Genworth Mortgage Insurance Corp. Also, the Delaware Department of Insurance gave the greenlight for Oceanwide to purchase Genworth Life Insurance Co.

Genworth Life Insurance Co. is the insurance subsidiary of Genworth Financial Inc., a Delaware-based corporation. The regulatory approvals are conditional on terms that were not disclosed because of confidentiality agreement, though Genworth and Oceanwide expect to be able to meet the conditions.

The merger agreement was agreed to on Oct. 21, 2016. Regulators in Australia and New Zealand have approved the transaction as well.

"We would like to thank the Delaware Department of Insurance, Fannie Mae, Freddie Mac and regulators in Australia and New Zealand for their diligence in reviewing our transaction," said Tom McInerney, president and CEO of Genworth. "We look forward to continuing to work with them following completion of the proposed acquisition."

Completing this transaction requires the receipt of regulatory approvals in the U.S., China and other international jurisdictions and other closing conditions. As disclosed on Nov. 30, 2018, Genworth and Oceanwide entered into an updated waiver and agreement to extend the termination date to Jan. 31, 2019, recognizing that securing all required regulatory approvals will likely extend into early 2019.

Quicken Loans has signed a contract extension to continue using LoanSphere MSP, Black Knight’s  servicing system.

“As a company that has been ranked No.1 for client satisfaction in mortgage servicing [for] five years in a row by J.D. Power, it is clear we make our clients’ servicing experience a priority,” said Jay Farner, chief executive officer at Quicken Loans. "I’m looking forward to the next five years with Black Knight as our partnership continues to evolve while still setting the bar for client satisfaction in our industry.”

Black Knight’s LoanSphere MSP system offers robust and scalable end-to-end loan support to help mortgage servicers manage all aspects of their operations, from payment processing to escrow administration, client service, default management and more. The technology can accommodate any size portfolio, including that of Quicken Loans the sixth largest servicer. It is also augmented by Black Knight’s award-winning customer support.

“Our ongoing partnership with Quicken Loans strengthens our mutual commitment to transforming the mortgage experience for the benefit of consumers and the industry as a whole,” said Anthony Jabbour, chief executive officer of Black Knight. “I’m looking forward to the next five years with Black Knight as our partnership continues to evolve while still setting the bar for client satisfaction in our industry.”

Black Knight’s LoanSphere MSP system offers robust and scalable end-to-end loan support to help mortgage servicers manage all aspects of their operations, from payment processing to escrow administration, client service, default management and more. The technology can accommodate any size portfolio, including that of Quicken Loans the sixth largest servicer. It is also augmented by Black Knight’s award-winning customer support.