Black Knight: Forbearances Improved First Week Of September

More than two million forbearance plans were set to expire this month, but Black Knight reports after the first week that number has dropped to 1.7 million. The total number of mortgages in forbearance fell 66,000 this week, on top of a 150,000 drop last week. The change is the result of forbearances being assessed for extension or removal. Taken together, that means the total number of homes in forbearance has dropped 6% in the last 30 days. And the number continues to trend down: 3.7 million homeowners are in Covid-19 related forbearance plans as of September 8, compared to 4.7 million in May, a 22% difference. Most of the decline came from GSE loans, which fell 36,000 in the…

Mortgage Costs Rose Faster Than Rents In August, But Trend Down

The national median for monthly mortgage payments increased faster than rents in 25 out of 50 major U.S. metro areas, but rents are speeding up as mortgage hikes begin to slow, a Redfin report found. Average monthly rents increased 9% over the past year, reaching $1,836 in August, but median mortgage payments rose 67% faster. August’s numbers represent the seventh month in a row mortgages outpaced rents. But August also saw a dip in mortgage payment growth, dropping to $1,494, while rents continued to climb. Rent prices have exploded as would-be homeowners struggled to find affordable houses and battled cash-rich investors in bidding wars. “Record high home price growth has priced many renters out of buying, leaving many facing higher…

Homeowner Equity Grew a Record $1T in Q2

American homeowners gained a record $1 trillion in tappable equity in the second quarter of 2021, a single-quarter record according to mortgage data company Black Knight, Inc. That brings the total equity available to $9.15 trillion, up 37 percent in a single year. “Such strong equity positions should help limit the volume of distressed inflow into the real estate market as well as provide strong incentive for homeowners to return to making mortgage payments – even if needing to be reduced through modification,” said Ben Graboske, Black Knight president of data and analytics. According to their latest Mortgage Monitor report, this available equity comes even as loans against home equity surged. “The 1.1M cash-outs originated in Q2 were the largest quarterly volume…

Freddie Mac: Rates Steady Yet Again

Freddie Mac’s latest Primary Mortgage Market Survey (PMMS®) found that mortgage rates held steady another week, up just .01% from last week to 2.88%. Rates haven’t moved much in several weeks.  The rate on a 30-day fixed-rate mortgage averaged 2.88%, inching up compared to last week. It was 2.86% a year ago. Rates on 15-year fixed-rate mortgages followed the same trend, averaging 2.19%, nearly identical to the 2.18% rate in the previous week. Fifteen-year rates averaged 2.37% a year earlier. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 2.42%, shaking things up with slight decrease from last week’s 2.43%. Last year it was 3.11%. “While the economy continues to grow, it has lost momentum over the last two months due to…

Down Payments on Homes Across Top 50 U.S. Metros Now Average $46,000

A new study by LendingTree found that the average down payment on homes across 50 major U.S. metros has reached $46,283. As interest rates fell to historic lows and the housing market sizzled, high home prices led to larger down payments. Analysts at LendingTree calculated median down payments in the largest 50 U.S. metros and compared how expensive they were relative to their median annual household incomes. “An average down payment on a home costs at least $28,000 in each of the nation’s 50 largest metros,” they reported. In some markets it was almost four times that number. The most expensive cities peaked at over $100,000. San Jose had an average of $115,138 down, which amounts to 88% of the…

QuoteWizard: American Debt Dropped During The Pandemic

Americans made a dent in their debts during the pandemic, according to a new study from QuoteWizard. Analysts for QuoteWizard, an online lead generation marketplace for insurance, monitored thirty-three debt metrics between February 2020 and October 2020. They found that credit scores improved, people made more payments on their student loans, and the number in debt collection dropped. Nationally there was a 10% decrease in subprime credit scores and a 2% decrease in debt collection. Student loan delinquency and credit card delinquency both fell, by 32% and 31% respectively. “Americans having less debt has broader implications across the whole economy. The better your credit score, the less you are going to pay on everything from auto loans and home mortgages…

Number Of Loans In Forbearance Falls To 3.23%

The number of loans in forbearance as of August 29 fell from 3.25% of portfolio volume to 3.23%, according to the Mortgage Bankers Association’s (MBA) latest survey. That puts the estimated number of homeowners in forbearance at 1.6 million. For Fannie Mae and Freddie Mac loans, the number fell 3 basis points to 1.63%. Ginnie Mae loans fell from 3.92% to 3.62%. But portfolio loans and private-label securities increased the number of homes in forbearance 34 basis points, from 7.18% to 7.52%. Independent mortgage bank servicers saw a drop of 1 basis point to 3.49%, and depository servicers saw a drop of 2 basis points to 3.33%. “The share of loans in forbearance decreased by two basis points last week, with…

Mortgage Applications Down Again

Mortgage application volume fell again in the past week, dropping to its lowest point since Mid-July, the Mortgage Bankers Association’s (MBA) weekly survey found. Mortgage application volume fell by 1.9%. On an unadjusted basis, the index dropped 3% from last week. The data is driven largely by a 3% decline in refinancing. The refinance index was 4% lower year-over-year for the same week. The survey also showed a small 0.2% decline in the seasonally adjusted purchase index. “Mortgage application volume fell last week to its lowest level since mid-July, as mortgage rates have stayed just above 3% for several weeks. Refinance volume has been moderating, while purchase volume continues to be lower than expected given the lack of homes on…

HPSI Stays Flat, But Buyers Are Optimistic About The Future

As the housing market cools slightly and prices trend downward, consumers feel more positive about their homebuying prospects, according to Fannie Mae’s August Home Purchase Sentiment Index (HPSI). The HPSI is a national telephone survey that polls 1,000 consumers a month about owning or renting a home, price changes, the economy, and overall consumer confidence. The results can help predict future housing outcomes. The HPSI was essentially unchanged in August, falling 0.1 points to 75.7, but the survey revealed that buyers are starting to feel more optimistic about the housing market. For the first time since March, more respondents said they believe it’s a good time to buy a home, rising from 28% to 32%. The percentage of those who…

423,000 New Homes For Sale In August

The housing market is leveling out, with smaller, more affordable homes being listed and sellers pricing more competitively as 423,000 new homes go up for sale, according to Realtor.com’s August Housing Market Trends Report. The data show the number of homes actively for sale was up 4.3% nationally in August over the past year, and up 5.1% specifically in large metro areas. “A deceleration in the decline of inventory means the market is heading in an encouraging direction, but active inventory still remains historically low,” the report said. Freddie Mac estimates the US is short 3.8 million single-family homes. That estimate represents a 52% rise in the nation’s home shortage compared with 2018. “Low mortgage rates have motivated homebuyers to endure this…