Mortgage loan application volume fell 6.9% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The Market Composite Index, which measures application volume, fell 6.9% on an adjusted basis. On an unadjusted basis, they fell 7% from the week before, which is 13% lower year over year. The share of refinancing applications fell 10% and was 16% lower than a year ago. The seasonally adjusted Purchase Index fell 2%, while the unadjusted Purchase Index fell 2% compared to the week before, down 13% from the previous year. “Mortgage applications to refinance dropped almost 10 percent last week to the lowest level in three months, as the 30-year fixed-rate increased to 3.14 percent – the highest since July. Higher rates…
Forbearances fell to just 2.89% of servicers’ portfolio volume last week, down from 2.96% the week before, according to the Mortgage Bankers Association’s (MBA) latest survey. It’s just the second time they’ve fallen below 3% since March 2020. The estimated number of homeowners in forbearance plans is around 1.4 million. The decline is part of a trend that’s continued even as government-funded forbearance relief plans have expired. For Fannie Mae and Freddie Mac loans, forbearances were down six basis points to 1.38%. Ginnie Mae loans fell seven basis points to 3.35%. Portfolio loans and private-label securities shares fell fourteen basis points, from 6.91% to 6.77%. Independent mortgage bank servicers saw a drop of five basis points to 3.19%, and the…
Surging home prices have made mortgage payments more unaffordable than any time since 2008. The median American household would need to spend 32.1% of its income on mortgage payments on a median-priced home today, according to the Federal Reserve Bank of Atlanta. In November 2008, that number was 34.2%. The Atlanta Fed estimated the amount a household would need to spend on mortgage payments rose 3.1% in the first six months of this year alone. Though low interest rates and slightly higher incomes improve affordability, the price of homes has negated any positive buying power they normally would have generated. Prices continue to climb despite some speculation that the market may soon cool. Years of underbuilding have resulted in a…
Most American seniors do not intend to sell their homes and have no plans to move, a survey by the American Advisors Group (AAG) found. It’s disturbing news for a housing market already struggling with a supply shortage. AAG, a reverse mortgage company, conducted a survey of 1,500 seniors on their plans for their homes. Eighty-two percent of seniors said they would live in their homes for the rest of their lives if they could. “Our studies have shown that seniors in this country have a strong attachment to their home, and the pandemic only strengthened that bond,” said AAG Chief Marketing Officer Martin Lenoir. “It’s no secret that many seniors have built substantial equity in their homes after years…
The number of plans in active forbearance fell by 11,000 this week, according to Black Knight’s blog, Vision. That leaves 1.58 million homeowners in forbearances due to Covid-19. The total number of mortgages in forbearances is now down 192,000 month-over-month, an 11% difference. This is the fastest rate of decline reported by Black Knight since July. As early forbearance entrants reach their final expirations, even larger exit rates are expected. The blog notes that “the largest declines in forbearance volumes typically come during the first week of the month, as plans which expired in the prior month are deactivated in servicing systems of records.” Forbearance exits are being closely watched by industry analysts as expiration dates for forbearance plans loom.…
Mortgage rates rose to 3.01% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent. “Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” said Sam Khater, Freddie Mac’s Chief Economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.” On Tuesday, both Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before Congress…
RealtyTrac’s Investor Sentiment Survey found 48% of real-estate investors believed the investment market is worse or much worse than a year ago, and 36% anticipate it will stay bad over the next six months. RealtyTrac, an ATTOM company that covers foreclosure and other real-estate data, surveyed more than 300 individual real-estate investors around the country. Almost 63% of respondents listed the rising cost of homes as a major challenge for investing, overtaking the former number one challenge, inventory, which came in at 57%. But when asked how they think the situation will look in six months, inventory again comes out on top, suggesting investors see home costs as a temporary hindrance. Competition from other buyers dropped out of the top…
Outstanding commercial and multifamily mortgage debt rose 1.5% in Q2 2021, an additional $60.7 billion, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Multifamily mortgage debt specifically increased $23.8 billion, or 1.4%, to $1.7 trillion from Q1. Total commercial and multifamily debt rose to $3.98 trillion. “Strong demand from all of the major capital sources led to another increase in the amount of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “In line with the strength of apartment fundamentals and values, there was a solid increase in the amount of multifamily mortgage debt outstanding. Additionally, the increase in mortgage debt on other, non-multifamily commercial properties…
Mortgage loan application volume fell 1.1% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Interest rate spikes stopped the upward momentum of applications seen in last week’s survey. The Market Composite Index, which measures application volume, fell 1.1% on an adjusted basis. On the same basis, they fell 1% from the week before, which is 13% lower year over year. The share of refinancing applications fell 1% and was 0.4% higher compared to a year ago. The seasonally adjusted Purchase Index fell 1%, while the unadjusted Purchase Index fell 2% compared to the week before, down 12% from the previous year. “Increased optimism about the strength of the economy pushed Treasury yields higher following last week’s FOMC meeting.…
Americans’ average credit score rose seven points from 2020 to Q2 2021, reaching 695, the highest average in more than 13 years, according to Experian’s State of Credit report. “The findings from this year’s report show something I’ve always believed: Americans are resilient, for the most part they make smart decisions in the face of adversity and they are agile in adjusting their financial habits when the environment or circumstances change,” said Alex Lintner, President, Experian Consumer Information Services. Consumers across all generations except Gen Z lowered their credit card balances and utilization rates. They also missed fewer payments. Minnesota held the highest average score, 726, while Mississippi held the lowest, 666. New Jersey had the highest number of credit…
