(RECAP: Private mortgage insurance activity rose sharply in the second quarter, grabbing the lead in market share from the FHA for the first time since the first quarter of 2015, according to a client note from Compass Point Research & Trading. According to the note, the PMI share of the mortgage insurance market rose to 37% in the second quarter, while the FHA share of the MI market fell from 40% to 34%. This is the first time private mortgage insurance outpaced insurance written by the FHA since the first three months of 2015, during which the FHA cut its annual mortgage insurance premiums by 50 basis points, from 1.35% to 0.85%, per the direction of the Obama administration. Analysts noted that the decline in FHA insurance is “notable,” because it’s the opposite of what was expected. The decline in FHA issuance could lend more political will to cutting rates again.)

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(RECAP: Low interest rates and an improving job market have made a wave of prospective first-time homebuyers, but they’re being stymied by a dearth of available starter homes. Nationwide, the inventory of homes costing $250,000 or less fell more than 12 percent between June 2015 and June 2016, according to the National Association of Realtors. The shortage stems from higher labor, land and building permit costs that have caused construction companies to focus on higher-end homes that bring more profit. In addition, institutional investors are snapping up affordable homes by the thousands in select markets nationwide and converting them to rentals. Over the past four years, the number of entry-level homes for sale – defined as those priced in the lower third of a local market – has fallen by 34 percent.)

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(RECAP: Millennials are less concerned about buying a home before interest rates increase, and more concerned that they won’t be able to find a home they want, according to a report from Trulia. There is, but, excellent news for Millennial homebuyers who do step into homeownership. The average FICO score of Millennial borrowers who closed on a mortgage in June rose to 723, up from 722 in May and 721 in April. For the third month in a row, FHA made up 37% of closed loans in June among Millennial homebuyers. This is compared to 60% who used conventional loans.)

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