Morning Roundup (5/11/2022) – Loan Applications, Active Listings

Good Morning! Today is Wednesday, April 11. Pentagon officials will testify about U.F.O.s before a House panel next week, the first such hearing in more than 50 years. The House passed $40 billion more in aid for Ukraine, totaling about $53 billion over two months. Biden called bringing down inflation his “top domestic priority.”

The Mortgage Note Reports

Loan Applications Up: Mortgage loan application volume rose by 2% last week even as rates rose to their highest point since 2009.

Another Glimmer Of Hope For Homebuyers: Active listings were down only 12.2% in April, their smallest YOY decline since December 2019 and a possible sign that inventory may rebound.

And in other mortgage and housing news…

US Delinquencies: US mortgage delinquencies were down 2.5% YOY in February, falling to a historic low and marking the 11th straight month of declines.

Foreclosures Down: US properties with foreclosure filings are down 8% from a month ago but up 160% from a year ago.

Credit AvailabilityMortgage credit availability fell by 3.2% in April, the second straight month of decline.

Driving Demand: First-time homebuyers are the major drivers of demand, with Freddie financing 22% more loans for first-time buyers in 2021 than in 2020, the highest level since at least 1994.

UWM Income: UWM said its net income dropped 47% year-over-year in the first three months of 2022 as interest rates rose and inventory stays low.

Steep Refi Drop: Black Knight reported overall rate locks down 20.3% month-over-month, driven by a steep 50% drop in rate/term refinance lending activity.

Snuffed Out: The end of the refi boom shows the Fed’s effort to lift interest rates — which began as a verbal campaign last fall and proceeded to actual rate hikes this year — is already starting to bite.

Rental Bidding Wars: Bidding wars, usually reserved for properties for sale, are becoming more common on rental units in big cities.

GA Licensing Law: A new GA law intends to reduce the impact on mortgage companies due to existing prohibition on the employment of previously convicted felons.