By CHUCK GREEN
Does anyone need some elbow room?
When COVID appeared to seize control over, well, nearly everything, there seemed to be ample space in offices – including those related to the mortgage industry – across the country. Desks? It was almost as though some hadn’t been occupied in decades.
That scenario is gradually changing. According to the Spring 2023 U.S. Office Occupier Sentiment Survey by CBRE, 65% of respondents say their companies are requiring that employees return to the office.
71% of financial and professional services company respondents said they are required to be back in the office, and most of the companies they work for expect attendance for more than half of the week.
So should mortgage…
Mortgage rates ticked down again, the second consecutive week of declines.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.69%, down from 6.71% the week prior.
A year ago at this time, the 30-year FRM averaged 5.78%.
The 15-year fixed-rate mortgage increased, however, up from 6.07% to 6.10%. A year ago, it averaged 4.81%.
“Mortgage rates decreased slightly this week in anticipation of the pause in rate hikes by the Federal Reserve,” said Sam Khater, Freddie Mac’s Chief Economist.
The pause did come: after ten consecutive increases, the Fed declined to raise interest rates at its June meeting.
“We have been seeing the effects of our policy tightening on demand in the most interest-rate-sensitive sectors of…
Mortgage applications turned around after four weeks of declines as rates dipped slightly.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 7.2%.
Adjusted purchase applications rose by 8%, while the unadjusted index was up 17% from the week before and 27% lower YOY.
The average interest rate for 30-year fixed loans fell for a second week from 6.81% to 6.77%.
Though it’s not a huge drop, any dip will pull some rate-sensitive buyers off the sidelines.
“Rates that are still more than a percentage point higher than a year ago, and low for-sale inventory continue to constrain homebuying activity in many markets. The average loan…
More than half of all mortgage professionals are living paycheck to paycheck, contending with rising inflation and a cooling market.
Everee, a payroll tech company, surveyed 314 commission-based mortgage professionals. Of the respondents, 31% said they plan to leave the industry in the next year. An additional 15% aren’t sure if they’ll stay in the industry moving forward.
The main issues for these respondents were pay and flexibility. These pros said they might consider staying in their jobs if they were given more flexible working options and competitive pay.
Many states have changed regulations surrounding lenders and work-from-home in the wake of the pandemic. Safety and privacy concerns have been hashed out through trial and error, and LOs at large…
While May saw a more robust mortgage market, demand is still nowhere near normal.
Black Knight’s latest Originations Market report found that though mortgage originations fared better in May than in April, they remain constrained.
Overall rate lock volumes were up 14% month-over-month in May due to April having two fewer business days. Production was up 4%.
“Indeed, while rate locks on purchase loans rose from April, they also dipped to their lowest level yet relative to 2018/2019 averages as rates rose late in the month,” said Andy Walden, vice president of enterprise research and strategy at Black Knight.
“Mind you, purchase loans have been making up the lion’s share of origination activity for much of the last year, making…
Competition for limited inventory has led to surprisingly hot home prices this spring season.
Zillow’s latest market report found that home values grew 1.4% between April and May, the highest since June 2022.
This is cooler growth than the previous two springs, but more than in 2018 or 2019. The typical home is valued at $346,856, up 0.9% YOY and 3.4% from January’s low point.
Buyers are desperate to make this market work for them despite its challenges, with sales up nearly 10% from April to May. At the same time, inventory reached a record low.
“Many homeowners are still opting not to sell and give up historically low mortgage rates. But those who do have been rewarded with bidding…
Mortgage rates declined last week, breaking a three-week streak of increases.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.71%, down from 6.79% the week prior.
A year ago at this time, the 30-year FRM averaged 5.23%.
The 15-year fixed-rate mortgage also fell from 6.18% to 6.07%. A year ago, it averaged 4.38%.
“Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s Chief Economist. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers.”
Elevated rates are keeping prospective home sellers locked in their current homes, unwilling to give up the super-low rates they scored during the pandemic housing boom. Builders are building, but not…
Middle-income buyers—classified as households earning up to $75,000— were once strong homebuying candidates with income to spare. Just five years ago, this group could afford to buy half of all available homes on the market.
Now, they can afford just 23% of listings, according to an analysis from the National Association of Realtors (NAR) and Realtor.com. The housing market needs about 320,000 mid-tier listings to make up for demand.
Middle-income buyers can on average afford a home valued up to $256,000, but very few are available. Among the 100 biggest metros, El Paso, Boise, and Spokane, WA, have the fewest affordable homes for this group. Ohio leads the way with the most, in Youngstown, Akron, and Toledo.
“Middle-income buyers face…
Mortgage applications fell for a fourth consecutive week, even as rates retreated from near-7% highs.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 1.4%.
Adjusted purchase applications fell by 2%, while the unadjusted index was down 13% from the week before and 27% lower YOY.
Rates took a turn, however, with the average interest rate for 30-year fixed loans falling 10 bps from 6.91% to 6.81%. Though that’s good news for home shoppers who can’t wait for a major shift in rates, it’s still the second-highest rate of 2023.
“Overall applications were more than 30% lower than a year ago, as borrowers continue to grapple…
Older Zoomers are entering the housing market, and they’re focused on affordable metros where they can save money.
LendingTree analyzed mortgage purchase requests from users in this demographic across the nation’s 50 largest metros from Jan. 1 through Dec. 31, 2022, to determine the metros they prefer.
The answer? Relatively inexpensive cities in the South and West.
Salt Lake City had the most interest from Zoomers, with 22.59% of this demographic’s mortgage requests. LendingTree notes that Salt Lake isn’t as affordable as other cities on its but boasts a strong job market and a blend of urban amenities and outdoor recreation.
It’s also experiencing massive home price depreciation. Prices soared during the pandemic as many Americans moved West. Now, like…
