Mortgage Forbearance Levels Drop To 5.67%

The share of mortgages in the United States under forbearance plans dropped again, with 2.8 million homeowners still having their payments paused, according to the latest report released Monday by the Mortgage Bankers Association. The survey found that as of November 1: Total loans in forbearance decreased from 5.83 percent to 5.67 percent.The share of Ginnie Mae loans in forbearance decreased from 8.13 percent to 7.95 percent.The share of Fannie Mae and Freddie Mac loans in forbearance decreased from 3.66 percent to 3.49 percent.Independent mortgage bank-managed loans in forbearance dropped from 6.27 percent to 6.19 percent.Bank-managed mortgages dropped from 5.86 percent to 5.60 percent. “A recovering job market, coupled with a strong housing market, is providing the support needed for…

JD Power: Mortgage Satisfaction Up In 2020

Longer loan processing times, infrequent communication and challenges using digital tools adversely impact customer experiences with mortgage originators, but overall customer satisfaction with their lenders increased this year, according to a survey released by J.D. Power on Monday. The J.D. Power 2020 US Primary Mortgage Origination Satisfaction Study found that customer satisfaction increased by six points this year, largely driven by low interest rates amid the Covid-19 pandemic. Specifically, the study found: Average refinancing time took 42 days from application to closing, up from 39 days in 2019 – with customer satisfaction about wait time declining accordingly.Satisfaction with the application and approval process declined 10 points this year.Customers using self-service channels for applications and approvals climbed five percentage points, while…

Housing Market Remains Hot In October

The calendar has turned to fall, but the housing market still seems to think it’s summer. The U.S. housing market chugged along at near record levels in October – with houses selling faster in October than September for the first time since 2011, according to a new report released by realtor.com. “In the fall, we normally see homes sell more slowly and prices pull back from peak levels. But this October, we saw a drop in the time it takes to sell a home even while home prices remain at their summer peak,” said Danielle Hale, chief economist for realtor.com.  The report found: Homes sold in 53 days in October, 13 days faster than last year and one day faster than…

US Homes Decreasingly Affordable

It’s getting harder and harder to afford a home. Housing affordability continued to decline in the third quarter, as inventory shortages and rising home prices offset record-low mortgage rates, according to a new report released Friday by the National Association of Home Builders (NAHB). The NAHB/Wells Fargo Housing Opportunity Index found that 58.3 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning an adjusted U.S. median income of $72,900 – down from 59.6 percent in the second quarter. “A six-month supply of homes is considered a normal supply and demand balance, and this figure has been running below a four-month rate since July, putting upward pressure on home…

Mortgage Rates Drop To 2.78%, Another Record

If you’re wondering if mortgage rates can go any lower, the answer is “yes” – at least for another week. The average 30-year fixed-rate mortgage dropped to a record 2.78 percent this week, according to the Primary Mortgage Market Survey released by Freddie Mac on Thursday. It is the lowest rate recorded in the survey’s history, dating to 1971. The survey found: The 30-year fixed-rate mortgage averaged 2.78 percent with an average 0.7 point, down from last week’s 2.81 percent and last year’s 3.69 percent.The 15-year fixed-rate mortgage averaged 2.32 percent with an average 0.6 point, unchanged from last week and down from last year’s 3.13 percent.The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.89 percent with an average 0.3 point,…

2020 Remains Strong Year For Mortgages

Mortgage applications edged up 3.8 percent for the week, as refinances and home purchases remain significantly higher than a year ago, according to a new report released Wednesday by the Mortgage Bankers Association. For the week ending October 30, refinances increased 6 percent from the previous week and were 88 percent higher than a year ago. Purchase applications were down 3 percent for the week but remained 25 percent higher than last year. The refinance share of mortgage activity increased to 68.7 percent of total applications from 66.7 percent the previous week. The adjustable-rate mortgage share of activity remained unchanged at 2.1 percent of total applications. “After a solid stretch of purchase applications growth, activity decreased for the fifth time…

Fires, Hurricanes & More: Get Us Out Of Here!

Led by homeowners and renters in the Northeast, more than a quarter of Americans say they want to or have already moved due to the recent spate of fires, floods and hurricanes, according to a new report by Redfin. The survey found that 27 percent of Americans said the natural disasters made them want to move, 23 percent said they like where they live more and half said it has had no impact. “Climate change still doesn’t feel like an immediate threat to a lot of people, but as more folks come face to face with wildfires, hurricanes and floods, we’ll see an increase in the number of Americans who consider moving due to natural disasters,” said Redfin chief economist…

2.9 Million Mortgages Remain In Forbearance

More than seven months after the start of the Covid-19 pandemic, 5.8 percent of mortgages in the United States remain in forbearance, according to the latest report released by the Mortgage Bankers Association. MBA’s weekly forbearance survey found that 2.9 million homeowners are in forbearance plans, including: 5.83 percent of all mortgages were in forbearance as of October 25, down from 5.90 percent the week before.Ginnie Mae loans in forbearance decreased from 8.17 percent to 8.13 percent.Fannie Mae and Freddie Mac loans in forbearance decreased from 3.72 percent to 3.66 percent.Independent mortgage bank loans in forbearance dropped from 6.35 percent to 6.27 percent.Bank-managed mortgages held steady at 5.86 percent. “With more borrowers exiting forbearance in the prior week, the share…

Multifamily Mortgage Delinquencies Drop

Delinquency rates for commercial and multifamily property mortgages declined in October as the Covid-19 pandemic stretched into the fall, according to a survey released Monday by the Mortgage Bankers Association. The survey found: 94.6 percent of outstanding loan balances were current, up from 94.3 percent in September.3.4 percent were 90+ days delinquent, down from 3.5 percent a month earlier.0.6 percent were 60-90 days delinquent, which is unchanged from September).0.6 percent were 30-60 days delinquent, down from 0.7 percent.0.7 percent were less than 30 days delinquent, down from 0.9 percent. “Commercial and multifamily mortgage performance improved in October, but there continues to be evidence of elevated stress, especially among loans backed by retail and lodging properties,” said Jamie Woodwell, MBA’s Vice…

Analysis: Renters Largely Making Payments

Renters tend to be prioritizing making monthly payments to their landlords amid the Covid-19 pandemic, according to a new analysis conducted by Freddie Mac. Freddie Mac’s study found: 93.6 percent of renters paid full or partial rent in May.94.2 percent paid full or partial rent in June. The finding most closely aligns with the National Multifamily Housing Council Rental Payment Tracker, which reported 95.1 percent in May and 95.5 percent in June. “The surveys analyzed in this report provide valuable insight into the rental market during this unprecedented time and it is important to consider what each source captures and how that fits into the bigger picture,” said Steve Guggenmos, vice president of Multifamily Research and Modeling at Freddie Mac. “The…