Mortgage Applications Hold Steady For Week

Mortgage applications largely held steady in mid-October, while the number refinances remained dramatically higher than a year ago, according to a report released Wednesday by the Mortgage Bankers Association. Overall, applications dropped 0.6 percent for the week ending October 16 – with refinances increasing 0.2 percent from the previous week and purchase applications declining 2 percent. On a year over year basis, refinance applications were up 74 percent and purchase applications were up 26 percent. The refinance share of mortgage activity increased to 66.1 percent of total applications from 65.6 percent the previous week. The adjustable-rate mortgage share of activity decreased to 1.9 percent of total applications. “Homebuyer demand remains strong this fall, but purchase applications did decrease 2 percent,…

Bidding Wars Still Common In US Housing Market

There’s still a ton of competition if you want to buy a house. Redfin released a report Tuesday that finds 56.3 percent of Redfin offers on homes in the United States faced competition in September, down a bit from the 59.1 percent in August. A majority of offers still faced bidding wars for the fifth month in a row. “The slight decline in bidding wars is largely a reflection of a seasonal cooldown, which typically starts in the late summer but was delayed by a few months this year,” Redfin chief economist Daryl Fairweather said. “But homebuyers are still sweating as they navigate what remains an unseasonably hot seller’s market.” Salt Lake City was the most competitive market with 81.1…

SWBC’s Susan Stewart Named MBA Chairman

SWBC Mortgage Corporation CEO Susan Stewart was sworn in as chairman of the Mortgage Bankers Association on Monday at the group’s virtual annual convention. Additionally, Wells Fargo Executive Vice President Kristy Fercho was named chairman-elect and Grandbridge Real Estate Capital CEO Matt Rocco was named vice chairman of the association. “It is a privilege to serve as MBA’s 2021 Chairman,” Stewart said. “I look forward to working with Kristy and Matt to address the challenges facing our industry, as well as help MBA members deal with the issues most affecting their businesses.” Fercho joined Wells Fargo in 2020 from Flagstar Bank, where she had served as president of the company’s mortgage division since 2017. Rocco joined Grandbridge, a subsidiary of…

US Home Prices Soar In September

Home prices soared by 14.4 percent in September, the largest annual increase of any month since Redfin began tracking prices in 2012, according to a report released Monday by the real estate brokerage. The increases are being driven by three converging factors, Redfin concludes: record-low mortgage rates, a historic housing supply shortage and a demand for bigger homes in pandemic times. “2020 will be known for a lot of things and a record-breaking year for real estate will certainly be one of its more unexpected legacies,” Redfin chief economist Daryl Fairweather said. “Demand typically abates in late summer and early fall, but seasonal patterns don’t stand a chance against the other factors motivating homebuyers this year. Homebuyers are seeking spacious…

Q3: $58B In Missed Housing, Student Loan Payments

More than 6 million households in the United States missed rent or mortgage payments and 26 million missed student loan payments in September as the economic effects of the Covid-19 pandemic stretched into their seventh month. The Mortgage Bankers Association’s Research Institute for Housing America report released Friday found that 8.5 percent of renters – or 2.82 million households – missed, delayed or made a reduced payment. Another 7.1 percent of homeowners – or 3.37 million – missed mortgage payments. Overall, the missed payments accounted for than $58 billion in revenue during the third quarter, the report found. “Rent and mortgage payment collections improved over the summer as more people went back to work, but high unemployment continues to place…

Mortgage Rates Hit Record Low – Again

Mortgage rates dropped to 2.81 percent this week, another new record and the 12th straight week rates have stayed under 3 percent, Freddie Mac reported Thursday in its weekly mortgage market survey. The survey found: The 30-year fixed-rate mortgage averaged 2.81 percent with an average 0.6 point for the week ending October 15, 2020, down from last week’s 2.87 percent and last year’s 3.69 percent.The 15-year fixed-rate mortgage averaged 2.35 percent with an average 0.5 point, down from last week’s 2.37 percent and last year’s 3.15 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.90 percent with an average 0.2 point, down from last week’s when it averaged 2.89 percent and last year’s 3.35 percent. “Low mortgage rates have become a regular…

Freddie Sees Low Mortgage Rates Through 2021

Mortgage rates are expected to remain near record lows through next year and home prices are expected to climb, though not as quickly as this year, according to Freddie Mac’s quarterly housing forecast. The forecast predicts: The average 30-year fixed-rate mortgage is expected to be 3.2 percent in 2020 and 3.0 percent in 2021. Currently, rates sit at 2.87 percent.House price growth is expected to increase to an annual rate of 5.5 percent in 2020 before slowing to 2.6 percent next year.Home sales are expected to increase in 2020 to 6.2 million homes and decrease in 2021 to 6.1 million homes.Purchase originations are expected to increase to $1.414 trillion in 2020 and $1.445 trillion in 2021.Refinance originations are expected to…

Refinance Market Remains Strong

While mortgage applications overall were relatively flat, significantly more American homeowners continue to work to take advantage of low interest rates by refinancing their mortgages. The Mortgage Bankers Association weekly survey Wednesday found that mortgage applications decreased 0.7 percent from a week earlier – with the number of refinance applications slipping 0.3 percent while remaining 44 percent higher than a year ago. Purchase applications dropped 1 percent and were 24 percent higher than a year ago. “Refinance and purchase activity continue to run well ahead of last year’s pace, fueled by record-low rates and strong homebuyer demand,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Housing supply is a challenge for many aspiring buyers, but activity…

Luxury Homes In Demand In US – Except Philly

Americans are moving on up. Redfin reports that luxury home sales in the United states increased 41.5 percent in the third quarter over a year ago – the largest jump since at least 2013. Comparatively, sales of medium-priced homes increased 3 percent and affordable home sales dropped 4.2 percent, Redfin found. “The luxury housing market normally takes a hit during recessions as wealthy Americans tighten their purse strings, but this isn’t a normal recession,” Redfin chief economist Daryl Fairweather said. “Remote work, record-low mortgage rates and strong stock prices during the pandemic are allowing America’s wealthy families to gobble up expensive houses with home offices and big backyards in the suburbs. Meanwhile, scores of lower- and middle-class Americans have lost…

3.2 Million US Mortgages In Forbearance, A Decrease

There was a pretty big drop in the percentage of US mortgages in forbearance this week, with 3.2 million homeowners still in plans to pause their loans, according to the weekly report released Monday by the Mortgage Bankers Association. MBA’s survey found that 6.32 percent of mortgages were in forbearance as of October 4, down from 6.81 percent the week before. “With the forbearance program for federally backed loans under the CARES Act reaching the six-month mark, many borrowers saw their forbearance plans expire because they did not contact their servicer. Another reason for expirations was that borrower information needed to determine an appropriate loss mitigation option was not yet in place,” said Mike Fratantoni, MBA’s Senior Vice President and…