Origination activity continues to sink as the market corrects, with refinances seeing major drops. Black Knight’s October 2022 Originations Market Monitor report found that rate lock dollar volume dropped 14.3% month-over-month to its lowest level since February 2019. Refinances have been hit especially hard, making up just 14% of all origination activity in October. Cash-out refis, which had previously seemed resilient due to widespread equity gains, fell 25.1% from September and are down 83.6% YOY. Rate/term refis sank an additional 15.7% and are now down 92.6% YOY. “With interest rates now at their highest level in 20 years, the refi market is rapidly approaching a bottom,” said Scott Happ, president of Optimal Blue, a division of Black Knight. “Indeed, our…
Mortgage loan delinquencies dropped to 3.45% of all loans outstanding in Q3 2022, once again breaking the record for the lowest point since 1979. According to MBA’s National Delinquency Survey, delinquencies were down 19 BPS from Q2 and 143 BPS from a year earlier. Foreclosure starts and loans in the process of foreclosure also fell further, and remain below historical averages. “The relatively small number of seriously delinquent homeowners are working with their mortgage servicers to find foreclosure alternatives, including loan workouts that allow for home retention,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. Alternatives can include reinstatement, loan modification, deed-in-lieu of foreclosure, or short sale. Booming home equity is one of the reasons foreclosures have remained…
Mortgage interest rates tipped back over 7% last week, continuing to yo-yo back and forth from the high 6.90s, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 7.08%, up from 6.95% the week prior. A year ago at this time, the 30-year FRM averaged 2.98%. “As the housing market adjusts to rapidly tightening monetary policy, mortgage rates again surpassed 7%,” said Sam Khater, Freddie Mac’s Chief Economist. “The housing market is the most interest-rate sensitive segment of the economy, and the impact rates have on homebuyers continues to evolve. Home sales have declined significantly and, as we approach year-end, they are not expected to improve.” Purchase loans ticked up recently after a…
As the market corrects and mortgage demand sinks, lenders are struggling to market themselves to a shrinking pool of rate-focused borrowers, according to J.D. Power’s latest U.S. Mortgage Origination Satisfaction Study. The study found that as demand hits a 22-year low, mortgage brokers are finding it difficult to stand out from the crowd. Borrowers are choosing lenders based solely on who is offering the lowest rate that day. “The average mortgage customer experience has become increasingly commoditized, with few lenders finding the right formula to build long-term trust and loyalty that truly stands out from the competition,” the report reads. Rocket Mortgage ranked highest for origination satisfaction, followed by Chase, Citi, and Fairway Independent. Overall, lenders were on equal footing…
Foreclosures have now risen more than 50% YOY as filings edge closer to pre-pandemic levels, according to ATTOM’s October 2022 U.S. Foreclosure Market Report. A total of 32,376 properties had foreclosure filings in October, up 57% from a year ago. But month-to-month, foreclosures only rose by 2%. Foreclosures continue to climb steadily toward pre-pandemic levels after the foreclosure moratorium, pushing YOY data artificially to scary highs. Activity is still below what ATTOM considers normal levels. “October foreclosure activity was about 59% of pre-pandemic numbers, and at its current pace, foreclosures probably won’t be back to historically normal levels until sometime around mid-2023,” said Rick Sharga, executive vice president of market intelligence at ATTOM. Illinois, Delaware, and New Jersey were the…
Mortgage loan application volume dipped just slightly last week, continuing a weeks-long trend of relative calm, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 0.1%. Mortgage rates jumped back up to 7.14% after cooling slightly. The adjusted purchase index rose 1%, while the unadjusted purchase index decreased by 1% and was 41% lower YOY. “Mortgage rates edged higher last week following news that the Federal Reserve will continue raising short-term rates to combat high inflation. The 30-year fixed rate remained above 7% for the third consecutive week, and there were increases for most other loan types,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. …
Homeowner equity saw a contraction in Q3 2022 as dropping prices are finally taking their toll, according to Black Knight’s latest Mortgage Monitor Report. Home prices are cooling at a slower pace than they have been in the last few months, but the impact of those price drops is catching up to homeowners basking in record-high equity levels. Equity is down $1.3 trillion from Q2, and close to $1.5 trillion from its peak in May. This is the largest quarterly drop by dollar value ever recorded “by far,” Black Knight Data & Analytics President Ben Graboske noted. By percentage, it’s the biggest decline since 2009. “As we reported at the time, while hitting a record high in Q2, total homeowner…
Americans agree that military families deal with more financial stress than the average family. Ahead of Veterans Day, WalletHub looked at the best places veterans can live to reduce that burden. The Midwest and South offer the best places for veterans to live well, according to WalletHub’s 2022 Best & Worst Places for Veterans to Live report. The report analyzed the 100 largest U.S. cities for key metrics related to veterans’ quality of life, including the share of military skill-related jobs, housing affordability, and proximity to VA health facilities. Raleigh, NC, took the top spot for the best place for veterans to live, followed by Austin, TX, and Laredo, TX. Madison, WI, and Tampa, FL, rounded out the top five.…
Mortgage interest rates softened last week after shooting above 7%, falling back to 6.95%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.95%, down from 7.08% the week prior. A year ago at this time, the 30-year FRM averaged 3.09%. “Mortgage rates continue to hover around 7%, as the dynamics of a once-hot housing market have faded considerably,” said Sam Khater, Freddie Mac’s Chief Economist. “Unsure buyers navigating an unpredictable landscape keep demand declining while other potential buyers remain sidelined from an affordability standpoint. Yesterday’s interest rate hike by the Federal Reserve will certainly inject additional lead into the heels of the housing market.” The Federal Reserve approved another 75 BPS interest…
Even as the housing market is rapidly cooling, homeowner equity rose again in Q3, according to ATTOM Data’s Q3 2022 Home Equity & Underwater Report. The report found that 48.5% of mortgaged residential properties were considered equity-rich, up from 48.1% in Q2 and from 39.5% a year earlier. This is a slower increase than previous quarters, but still the 10th quarter of gains. “Even though home price appreciation has slowed down dramatically in recent months, homeowners have continued to build equity,” said Rick Sharga, executive vice president of market intelligence at ATTOM. At least half of mortgagees in twenty states are now equity-rich, compared to only seven states at the same time last year. In total, 94.3% of all mortgage…
