Commercial and multifamily delinquencies fell in Q1 2022, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. MBA looked at commercial/multifamily delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. These groups hold more than 80% of outstanding debt in these categories. The number of banks and thrifts overdue by 90 or more days fell to 0.56% from Q4 2021. The number of life company portfolios 60 or more days late rose slightly to 0.05%, while Fannie Mae fell to 0.38%. Freddie Mac remained unchanged at 0.08%. CMBS that were 30 or more days delinquent or in REO dropped to 3.36%. “Commercial…
Pending home sales fell for the sixth straight month, down 3.9% in April from the month prior and 9.1% YOY, according to the National Association of Realtors (NAR) Pending Home Sales Index (PHSI). The PHSI looks at contract signings as an indicator of home sales, with a reading of 100 equal to contract signing activity in 2001. It registered a reading of 99.3 in April. Only the Midwest saw an increase in pending sales, while the three other regions saw declines. Pending home sales transactions in the South fell by 4.7% to an index of 119.0, down 10.3% YOY. The index in the West slipped 4.3% in April to 85.9, a 10.5% decrease YOY. “Pending contracts are telling, as they…
Mortgage rates dropped for yet another week to an average of 5.10%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.10%, down from last week’s 5.25%. A year ago at this time, the 30-year FRM averaged 2.95%. “Mortgage rates decreased for the second week in a row due to multiple headwinds that the economy is facing,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite the recent moderation in rates, the housing market has clearly slowed, and the deceleration is spreading to other segments of the economy, such as consumer spending on durable goods.” 5-year ARMs did rise, however, from 4.08% a week ago to 4.20%. ARMs have become appealing to…
Home prices rose in Q1 2022 for the majority of Opportunity Zones, with the pace of gains in half of all zones besting quarterly and annual increases across the nation, ATTOM reported. Opportunity Zones are areas targeted for economic improvement, defined in the Tax Act legislation as census tracts in or alongside low-income neighborhoods that meet specific criteria for redevelopment. ATTOM analyzed 5,092 zones in the U.S. that had at least five home sales in Q1 2022. The report found that median single-family home and condo prices increased in 55% of zones between Q4 2021 and Q1 2022. In 50%, prices rose by at least 20%, despite the fact that the pace of increases slowed in Q1. “Home price trends…
The national median payment applied for by homebuyers rose 8.8% to $1,889 in April, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI). PAPI measures changes in monthly mortgage payments relative to income across time. An increase shows the payment to income ratio is up due to increasing application loan amounts or mortgage rates, or a decline in earnings. The national PAPI was up 7.8% to 162.7 in April. This shows affordability declining as payments increase, accounting for a larger share of a typical person’s income. The index is up 27% YOY. Borrowers in the 25th percentile of prices saw their mortgage payment rise 9.6% to $1,236. “Rapid home-price growth, low inventory, and an 80-basis-point surge in…
Seller-buyers are making a splash this spring, with 72% of home sellers also planning to buy their next one this year, according to a new survey from Realtor.com. Realtor partnered with HarrisX to survey homeowners nationwide. The results showed a market flooded with younger seller-buyers looking for more affordable homes to accommodate growing families. Millennials are the most active seller-buyers in the market (47%). Gen Z, the youngest market-ready cohort, came in second at 25%, followed by Gen X (15%) and Baby Boomers (12%). Most seller-buyers said they planned to buy a home first, then list their current home (46%), the choice that offers the most flexibility. Another 44% said they plan to sell and buy at the same time,…
Mortgage loan application volume dropped another 1.2% after plunging by 11% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, fell by 1.2%. The adjusted purchase index didn’t budge, moving 0%, while the unadjusted purchase index fell by 1% and was 16% lower YOY. The refinance index fell 4% and was down 75% YOY. Refinances made up 32.3% of total applications. ARM activity fell to 9.4% of total applications. “The 30-year fixed rate declined for the second straight week to 5.46% but remains well above what borrowers were used to over the past two years. Most refinance borrowers continue to remain on the sidelines as a result,…
Americans reported their highest level of financial well-being since 2013 in the Federal Reserve Board’s Economic Well-Being of U.S. Households in 2021 report. The data comes from the Board’s 9th annual Survey of Household Economics and Decisionmaking (SHED), which was conducted in October and November 2021. “The SHED results provide valuable insight into Americans’ financial conditions during the late fall of 2021. This important perspective helps the Federal Reserve better understand the economic challenges that existed during that phase of the pandemic recovery,” Federal Reserve Board Governor Michelle W. Bowman said. In Q4 2021, 78% of adults reported either doing okay or living comfortably financially, while financial well-being rose among all racial and ethnic groups measured. Hispanic adults saw a…
By SCOTT KIMBLER It is being reported that the typical homebuyer could save an estimated $15,582 over five years if they take out an adjustable-rate mortgage and some borrowers are wondering if the risks are worth the rewards. On Friday, Redfin published an article by Lily Katz and Taylor Marr which stated that demand for adjustable-rate mortgages is on the rise because they typically have lower interest rates than 30-year fixed loans. The Redfin analysis used the estimated monthly mortgage payment on a median asking price home during the four weeks ending May 12. The amount used for calculations was $410,700. The analysis found that the monthly payment for buyers who took out a 5/1 ARM was an estimated $2,164…
The delinquency rate nationwide dropped to 2.80% in April, as overall delinquencies fell almost 40% YOY, according to Black Knight’s “first look” at its April 2022 month-end mortgage performance stats. The numbers reflect the mortgage market’s continued recovery from pandemic impacts. Prepayment activity dropped 19.1% from March and is down 61.8% YOY due to rapidly increasing interest rates. Rates averaged 5.25% last week. The number of borrowers who are a single payment overdue rose 7.9% month-over-month, which Black Knight says is typical of the season. That increase was offset by improvements among more seriously delinquent borrowers. The volume of borrowers three or more months past due fell by 8% from the month prior. Serious delinquencies are down between 6% and…
