Mortgage applications fell again last week as borrowers recoil in the face of rising rates.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.6%, adding to last week’s drag.
Adjusted purchase applications fell by 4%, while the unadjusted index was down 5% from the week before and 30% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.57% to 6.69%, the highest level since March.
“Since rates have been so volatile and for-sale inventory still scarce, we have yet to see sustained growth in purchase applications. Refinance activity remains limited, with the refinance index falling to its lowest level in two months…
After revising estimates back to January, April brought an increase in new residential sales, according to new data from the U.S. Census Bureau and the Department of Housing and Urban Development.
Sales rose by 4.1% to a seasonally adjusted annual rate of 683,000, compared to March’s 656,000, revised down from 683,000.
Sales were up 11.8% from the same time last year, which saw an annualized rate of just 611,000.
The seasonally‐adjusted estimate of new houses for sale was 433,000, representing a supply of 7.6 months at the current sales rate.
The numbers are surprising, as analysts had expected a decline.
The likeliest culprit is continuing stock shortages. New home sales have soared as existing inventory dwindles but buying a newly…
The CEO of a national end-to-end risk mitigation company says their platform opens doors to lenders that want to enter the construction market.
Leaders at CFSI Loan Management in Colorado say that at most lending institutions, construction loans make up less than 10% of originations due to the challenges and complexities of managing these transactions.
The company has completed more than 150,000 project inspections, 50,000 funding draws, and 25,000 project feasibility reviews. More than $15 billion in construction projects are being managed through CFSI’s construction lending platform, according to a press release.
Brian Mingham, founder and CEO of the company, was working in the mortgage business when the idea for CFSI was conceived. He says he saw the value in…
After falling slightly the week before, mortgage rates shot right back up last week, continuing to fluctuate within the 6% range.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.39%, up from 6.35% the week prior.
A year ago at this time, the 30-year FRM averaged 5.25%.
The 15-year fixed-rate mortgage remained unchanged at 5.75%. A year ago, it averaged 4.43%.
“The 30-year fixed-rate mortgage averaged 6.39% this week, as economic crosscurrents have kept rates within a ten-basis point range over the last several weeks,” said Sam Khater, Freddie Mac’s Chief Economist.
“After the substantial slowdown in growth last fall, home prices stabilized during the winter and began to modestly rise over the last few months.…
By KIMBERLEY HAAS
Professional opportunities, affordability, and fun in the country’s cities are being measured as commencement ceremonies wrap up nationally and Atlanta is coming out on top as the best place for college graduates to move to.
Earlier this week, WalletHub named Atlanta, Georgia, the best city to start a career after comparing the relative market strength and overall livability of 182 cities using 26 key metrics ranging from the monthly average starting salary to housing affordability.
Atlanta did well in the WalletHub ranking because of the availability of entry-level jobs and its low unemployment rate. On May 2, CoworkingCafe named Atlanta the best city to start a career with a bachelor’s degree. The underlying analysis took into account…
Existing-home sales dipped in April as high interest rates and low inventory continued to negatively impact the market.
Sales declined by 3.4% to a seasonally adjusted annual rate of 4.28 million from 4.44 million the month prior, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 23.2%.
All four major regions saw sales decline year-over-year and month-over-month.
“Home sales are bouncing back and forth but remain above recent cyclical lows. The combination of job gains, limited inventory, and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand,” said NAR Chief Economist Lawrence Yun.
“Roughly half of the country is experiencing price gains. Even in markets with lower…
Mortgage applications fell last week, wiping out the prior week’s gains, as purchase applications dropped to their slowest pace in a month.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 6.3%, changing course after last week’s 6.3% increase.
Adjusted purchase applications fell by 4.8%, while the unadjusted index was down 5% from the week before and 26% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.48% to 6.57%, its highest level in two months.
Refinances fell 8% from the week prior after a 10% increase last week.
They remain 43% lower than the same time last year, comprising only 27.4% of…
By KIMBERLEY HAAS
A Fannie Mae program designed to help build the credit scores of renters is finding success.
Launched in September, the Multifamily Positive Rent Payment Reporting pilot program allows property owners to share timely rent payment data with the three major credit bureaus. The goal is to accelerate the adoption of rent payment reporting so renters and prospective homebuyers with no or little credit can establish or improve their credit history.
Lenders can incorporate that data when evaluating potential homebuyers.
Leaders at Fannie Mae report that more than 263,000 rental units have been onboarded as of April 30. Over 10,000 renters in properties participating in the program have established credit for the first time and 58% of residents…
Dealing with neighbors is a natural part of American life, but tensions between households do have an impact on where people live.
Of 2,000 Americans with neighbors surveyed by LendingTree, 24% say they dislike at least one of their neighbors.
Nearly half report disliking a neighbor because they’re rude or unfriendly, followed by noisy (31%) and nosy (29%).
Shockingly, nearly 20% of Americans – 1 in 5 – have moved because of an obnoxious neighbor. The youngest generations, Gen Z and Millennials, are the most willing to move rather than put up with neighbor trouble (28% and 16%, respectively.) Only 16% of Gen Xers and 8% of Baby Boomers say they’ve left their homes because of interpersonal disputes.
Young Americans…
The Mortgage Bankers Association has once again adjusted its commercial and multifamily lending expectations downward as economic uncertainty continues to constrain the market.
MBA’s latest forecast shows commercial and multifamily borrowing falling 20% in 2023 to $654 billion, down from $816 billion in 2022.
This is a $9 billion reduction from its January prediction.
Multifamily on its own accounts for a 14% drop, slipping from $437 billion in 2022 to $375 billion this year. Apartment investment sales declined at the end of 2022 in response to the Central Bank raising interest rates.
“Higher interest rates, uncertainty about property values, and questions about the outlook for the cash flows of some properties led to a slowdown in commercial real estate transactions…
