Mortgage applications in the United States slipped last week, though remained significantly higher than a year ago, according to a report released Wednesday by the Mortgage Bankers Association. The report found that applications were down 4.1 percent overall for the week ending February 5. The Refinance Index was down 4 percent for the week – and up 46 percent from a year earlier. Purchase applications increased 2 percent for the week and 17 percent for the year. The refinance share of mortgage activity decreased to 70.2 percent of total applications from 71.4 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.3 percent of total applications. “Purchase applications cooled the first week of February, but homebuyers are…
Good morning! Today is Wednesday, February 10. Newly reported Covid-19 cases and hospitalizations have dropped over the past month. The National Transportation Safety Board determined the cause of the crash that killed Kobe Bryant, his daughter and six others was the pilot’s decision to fly under visual flight rules in cloudy conditions, which resulted in his spatial disorientation and loss of control of the aircraft. A Texas lawyer unwittingly went viral Tuesday after he was unable to remove a kitten filter during a Zoom conference with a judge. And in mortgage and housing news … CREDIT AVAILABILITY: The Mortgage Bankers Association’s updated Mortgage Credit Availability Index released increased by 2.0 percentage points to 124.6, indicating a looser credit market than the month before.…
The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned evictions until March 31. They had been set to expire February 28. Originally enacted last year to protect homeowners during the Covid pandemic, the moratorium applies to Fannie and Freddie-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Fannie and Freddie through foreclosure or deed-in-lieu of foreclosure transactions. “To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the Enterprises’ foreclosure and eviction extension,” said Director Mark Calabria. FHFA announced it projects expenses of $1.5…
It got just a little bit easier to lock down a mortgage last month. The Mortgage Bankers Association’s updated Mortgage Credit Availability Index released Tuesday increased by 2.0 percentage points to 124.6, indicating a looser credit market than the month before. The Conventional MCAI increased 4.8 percent, while the Government MCAI decreased by 0.1 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI increased by 2.2 percent, and the Conforming MCAI rose by 7.7 percent. “The growth in credit availability in January coincides with a housing market that is poised for a strong start to the year. Improvements were driven by the conventional segment of the mortgage market, as lenders added ARM loans with lower credit score…
The number of US mortgage borrowers whose loans are in forbearance remains stubbornly stuck at 2.7 million, according to a new report released by the Mortgage Bankers Association. The survey found: Total loans in forbearance decreased from 5.38 percent to 5.35 percent.The share of Ginnie Mae loans in forbearance decreased from 7.51 percent to 7.46 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.10 percent to 3.07 percent. “While new forbearance requests increased slightly at the end of January, the rate of exits picked up somewhat but remained much lower than in recent months. We are anticipating a sharp increase in exits in March and April as borrowers hit the 12-month expiration of their forbearance…
Commercial and multifamily mortgage loan originations were 76 percent higher in the fourth quarter than the quarter before – but remained 18 percent lower than the same period in 2020, according to a report released Monday by the Mortgage Bankers Association. For the year, preliminary MBA numbers show commercial and multifamily borrowing was 30 percent lower than in 2019. The report found: A 79 percent year-over-year decrease in the dollar volume of loans for hotel properties in the fourth quarter.A 72 percent decrease for retail properties.A 56 percent decrease for office properties.A 12 percent decrease for health care properties.Industrial property loan originations increased 15 percent.Multifamily property lending rose 14 percent. “The last three months of 2020 were stronger than earlier…
Millions of Americans are feeling insecure about their housing situation, with 2.3 million renters fearing eviction and 1.2 million borrowers fearing foreclosure – or would be forced to move in the next 30 days. Those findings were included in the Mortgage Bankers Association’s report released Monday. The report, by MBA’s Research Institute for Housing America, also found that 5 million US households did not make their rent or mortgage payments in December. “A rapid rollout of vaccines will hopefully slow the virus and lead to a larger reopening of the economy later this year,” said Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. “This would help the labor market and…
Mortgage rates didn’t budge this week – and that’s good news for borrowers. Freddie Mac’s Primary Mortgage Market Survey released Thursday showed: The 30-year fixed-rate mortgage averaged 2.73 percent with an average 0.7 point, unchanged from last week and down from 3.45 percent last year at this time. The 15-year fixed-rate mortgage averaged 2.21 percent with an average 0.6 point, up from last week’s 2.20 percent and last year’s 2.97 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.78 percent with an average 0.3 point, down from last week’s 2.80 percent and last year’s 3.32 percent. “Mortgage rates remained flat this week and near record lows, signifying an economy that continues to struggle,” said Sam Khater, Freddie Mac’s Chief Economist.…
By Rhett Wilkinson Home values in the United States exploded during the last year, as interest rates and home inventories both hit record lows. Report after report is finding good news for home sellers, including: The Federal Housing Finance Agency’s Home Price index released last month revealed that prices were up an incredible 11 percent from Nov. 2019 to Nov. 2020. Home values swelled in December by 3.2 percent over the prior quarter. That’s the biggest jump in at least 25 years, a new Zillow report says. U.S. housing gained nearly $2.5 trillion in value in 2020 – the most in a single year since 2005, with the full stock of U.S. housing now worth $36.2 trillion, according to a new Zillow analysis.Homebuyer demand…
Mortgage applications in the United States surged 8.1 percent the last week of January from a week earlier, according to a report released Wednesday by the Mortgage Bankers Association. The Refinance Index increased 11 percent for the week and was 59 percent higher than last year at the same time, while the Purchase Index increased 8 percent for the week and 16 percent for the year. The refinance share of mortgage activity increased to 71.4 percent of total applications from 70.7 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 2.2 percent of total applications. “After increasing for three consecutive weeks, the 30-year fixed mortgage rate dropped 3 basis points to 2.92 percent. The one-week reversal…
