Mortgage Applications Dip In Mid-February

Mortgage applications declined 5.1 percent for the week ending February 12, according to the weekly report released Wednesday by the Mortgage Bankers Association. The survey found the Refinance Index dropped 5 percent from the previous week while remaining 51 percent higher than the same week a year ago. The Purchase Index decreased 1 percent and was 15 percent higher than the same week last year. The refinance share of mortgage activity decreased to 69.3 percent of total applications from 70.2 percent the previous week. The adjustable-rate mortgage share of activity increased to 2.4 percent of total applications.   “Expectations of faster economic growth and inflation continue to push Treasury yields and mortgage rates higher. Since hitting a survey low in December,…

US Mortgages In Forbearance Drops To 2.6M

The number of US mortgages in forbearance dropped to 2.6 million last week after holding steady for several weeks, according to the weekly report released Tuesday by the Mortgage Bankers Association. The weekly survey found: The percentgage of loans in forbearance decreased from 5.35 percent to 5.29 percent as of February 7.The share of Ginnie Mae loans in forbearance decreased from 7.46 percent to 7.34 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.07 percent to 3.01 percent. “The share of loans in forbearance declined to the lowest level since April 5th of last year, due to decreases in both the GSE and Ginnie Mae portfolios,” said Mike Fratantoni, MBA’s Senior Vice President and Chief…

Mortgage Rates Steady Again This Week

Mortgage rates aren’t budging. For the second week in a row, the 30-year fixed-rate mortgage average didn’t move at all, according to Freddie Mac’s weekly Primary Mortgage Market Survey released Thursday. The survey found: The 30-year fixed-rate mortgage averaged 2.73 percent with an average 0.7 point, unchanged from last week and well below last year’s 3.47 percent.The 15-year fixed-rate mortgage averaged 2.19 percent with an average 0.6 point, down from last week’s 2.21 percent and last year’s 2.97 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.79 percent with an average 0.2 point, up slightly from last week’s 2.78 percent and down from last year’s 3.28 percent. “It’s a tale of two economies. The services economy remains in the doldrums, but…

Weekly Mortgage Applications Decrease

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…

Mortgage Roundup (2/10/21) – Credit, Bans & ROI

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.…

FHFA Extends Foreclosure, Eviction Ban

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…

Mortgage Credit Availability Grows In January

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…

2.7M Borrowers Remain In Forbearance

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, Multifamily Loans Recover Some In Q4

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…

Homeowners, Renters Fear Foreclosure, Eviction

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…