Mortgage Applications Decrease

Mortgage applications dropped 3.3 percent last week, the Mortgage Bankers Association announced Wednesday. For the week ending Aug. 14, purchase applications were down 1 percent from the week before – but were 27 percent higher than the same week last year. The Refinance Index dropped 5 percent from the previous week but was 38 percent higher than last year. “The housing market remains a bright spot in the current economic recovery and these results, combined with July data on housing starts and homebuilder optimism, suggest that housing supply could be increasing to better meet the strong demand for buying a home,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. The refinance share of mortgage activity decreased to…

US Forbearance Count Drops Again

The number of US mortgages in forbearance dropped for the ninth straight week – with 3.6 million homeowners still pausing their loan payments during the coronavirus pandemic, the Mortgage Bankers Association announced Monday. The MBA’s weekly survey found that 7.21 percent of mortgages were in forebearance as of August 9, down from 7.44 percent a week earlier. The survey found: The share of Ginnie Mae loans in forbearance decreased from 10.06 percent to 9.54 percent.The share of Fannie Mae and Freddie Mac loans in forbearance dropped from 5.19 percent to 4.94 percent.7.42 percent of loans managed by independent mortgage banks were in forbearance, down from 7.71 percent the week before.7.49 percent of bank-managed mortgages were in forbearance, down from 7.63…

Mortgage Delinquencies Jump In Q2

By Jim Perskie The delinquency rate for home mortgages increased by nearly 4 percentage points during the second quarter as the Covid-19 pandemic fully took hold in the United States, the Mortgage Bankers Association announced Monday. The rate climbed to 8.22 percent of all mortgage loans at the end of June – up 386 basis points from the end of the first quarter and 369 basis points from a year ago. New Jersey (up 628 basis points) and Nevada (up 600 basis points) led the way with the biggest increases. “The COVID-19 pandemic’s effects on some homeowners’ ability to make their mortgage payments could not be more apparent. The nearly 4 percentage point jump in the delinquency rate was the biggest…

Mortgage Rates Inch Up But Remain Under 3%

No new record this week. The 30-year fixed-rate mortgage averaged 2.96 percent for the week – up slightly from last week’s record 2.88 percent, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.96 percent with an average 0.8 point, up from last week’s 2.88 percent and 3.60 percent a year ago at this time.The 15-year fixed-rate mortgage averaged 2.46 percent with an average 0.8 point, up from last week’s 2.44 percent and last year’s 3.07 percent.  The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.90 percent with an average 0.4 point, unchanged from last week and down from last year’s 3.35 percent. “Homebuyer demand remains strong, especially for those in search of…

Mortgage Applications Increase Amid Low Rates

People are still applying for mortgages at a rate significantly higher than last year. Mortgage applications were up 6.8 percent last week from a week earlier – while purchase applications were up 22 percent from the same year ago and refinance applications were up 47 percent from a year ago, according to a report released Wednesday by the Mortgage Bankers Association. “While this was still positive news for the purchase market, the gradual slowdown in the improvement in the job market and tight housing inventory remain a concern for the coming months, even as low mortgage rates continue to provide support,” said Joel Kan, MBA’s Vice President of Economic and Industry Forecasting. The refinance share of mortgage activity increased to…

Redfin: Bidding Wars Continue

More than half of Redfin offers on home purchases faced competing bids in July, according to a new report released by the brokerage. Redfin reports that 54 percent of offers nationwide had at least one competing bid – down slightly from 56 percent in June. It is the third month in a row that half of Redfin offers experienced bidding wars. “Bidding wars may slow down if interest rates tick up again, which could happen if we get good news about a coronavirus vaccine or more clarity around the outcome of the upcoming U.S. presidential election,” Redfin chief economist Daryl Fairweather said. “At the same time, we may still be in the early innings of the pandemic migration wave. If coronavirus…

3.7M US Mortgages Remain In Forbearance

The number of mortgages in forbearance in the United States continues to inch down each week, though 3.7 million Americans still have payments paused, the Mortgage Bankers Association announced Monday. The share of mortgages decreased from 7.67 percent to 7.44 percent as of August 2, according to MBA. “The share of loans in forbearance declined at a more rapid pace last week, with many borrowers who had been making payments while in forbearance deciding to exit. New forbearance requests increased, but are still well below the level of exits,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. The MBA report found: The share of Ginnie Mae loans in forbearance decreased from 10.28 percent to 10.06 percent.The share of…

Q2 Commercial, Multifamily Loans Way Down

Even as the housing market fought through the coronavirus pandemic, commercial and multifamily mortgage loan originations dropped 48 percent in the second quarter compared to a year ago, according to a survey released Monday by the Mortgage Bankers Association. MBA’s quarterly survey of commercial/multifamily mortgage bankers originations found they had declined 31 percent from the first quarter. “Commercial real estate borrowing and lending slowed dramatically in the second quarter, as uncertainty around the COVID-19 pandemic caused both borrowers and lenders to focus more of their attention on their existing books of business instead of new opportunities,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research.  All property types showed a decline in the second quarter in commercial/multifamily lending…

Mortgage Credit Loosens Slightly In July

Mortgage credit was slightly more available last month after tightening every other month of the year to date, according to the Mortgage Credit Availability Index released by the Mortgage Bankers Association. The MCAI rose by 1.5 percent to 126.9 in July. The Conventional MCAI increased 2.9 percent, while the Government MCAI increased by 0.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 5 percent, and the Conforming MCAI rose by 1.2 percent. “Credit availability rose slightly in July – the first increase in eight months – as the supply of certain types of adjustable rate mortgages and jumbo loans increased. The improvement was more of a leveling off from the precipitous drop earlier this…

Mortgage Rates Plunge To 2.88% – Another Record

How low can they go? The 30-year fixed-rate mortgage averaged a record-low 2.88 percent, the eighth time rates set a new record this year, according to Freddie Mac’s Primary Mortgage Market Survey released Thursday. “The resilience of the housing market continues as mortgage rates hit another all-time low, giving potential buyers more purchasing power and strengthening demand,” Freddie Mac’s Chief Economist Sam Khater said. “We expect rates to stay low and continue to propel the purchase market forward. However, the main barrier to rising demand remains the lack of inventory, especially for entry-level homes.” The survey found: The 30-year fixed-rate mortgage averaged 2.88 percent with an average 0.8 point for the week ending August 6, down from last week’s 2.99…