Lending Dropped For Third Straight Quarter In Q4 2021

Mortgage lending dropped at its fastest pace in almost three years in Q4 2021, down for the third quarter in a row and the largest decrease since late 2018, according to ATTOM’s Q4 2021 U.S. Residential Property Mortgage Origination Report. The report found that 3.27 million mortgages were originated in Q4 2021, or $1.06 trillion worth of mortgages. This is down 11% from Q3 2021 and 13% from Q4 2020. All three categories of conventional loans– purchase, refi, and home equity– saw quarterly declines, with only purchases remaining up year-over-year (YOY). Refis were down 11% from Q3 2021 and 23% YOY, with 1.81 million home loans refinanced. Q4 was the third straight quarter of refi declines. The dollar volume of…

Rental Rates Up By More Than 15%, Adding To Inflation

By KIMBERLEY HAAS Monthly asking rates for rentals increased an estimated 15.2% year-over-year in January, and some economists say this is accounting for a significant portion of recent inflation. Redfin is reporting that last month the average asking rent was $1,891, which is the largest annual jump since at least February of 2020. The national median monthly mortgage payment for homebuyers climbed by 25% year-over-year to $1,595. That is also the biggest increase in Redfin’s records. Redfin Chief Economist Daryl Fairweather noted that rising mortgage rates are shrinking more Americans out of the for-sale market, which will likely put increasing pressure on rents this year. “Moving right now is expensive, whether you’re renting or buying,” Fairweather said. “One of the only…

Delinquencies Fell To 4.65% In Q4 2021

Delinquencies on residential properties fell to 4.65% of all outstanding loans in Q4 2021, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The delinquency rate fell 23 basis points from Q3 2021 and 208 basis points year-over-year (YOY). Q4’s delinquency rate was 67 basis points lower than MBA’s survey average of 5.32%, while the rate for seriously delinquent loans was 2.83%, close to the longer-term average of 2.80%. MBA’s survey classifies loans as delinquent if the payment was not made based on the original terms of the mortgage. “Mortgage delinquencies descended in the final three months of 2021, reaching levels at or below MBA’s survey averages dating back to 1979,” said Marina Walsh, CMB, MBA’s Vice President of…

Affordability Challenges Push Housing Sentiment Down

Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 2.4 points to 71.8 in January, its lowest level since May 2020, the GSE reported. The full index is down 5.9 points year-over-year. Affordability concerns drove sentiment down, with four of the index’s six components falling month-over-month. Only 25% of respondents said they believed it’s a good time to buy a home, an all-time low for the survey, while 69% said it’s a good time to sell. “Consumer sentiment toward housing softened further in January – the HPSI fell 2.4 points to 71.8 – as affordability and supply constraints continue to limit home purchase opportunities, particularly among younger households,” said Doug Duncan, Fannie Mae Senior Vice President and Chief Economist. Younger consumers…

Is Home Ownership More Affordable Than Renting? It Depends.

By KIMBERLEY HAAS A report released this month suggests that despite rising home prices it is more affordable to own a median-priced house than to rent a three-bedroom property in a majority of the United States. ATTOM’s 2022 Rental Affordability Report used fair-market rent data from the U.S. Department of Housing and Urban Development, wage data from the Bureau of Labor Statistics, and sales deed data in 1,154 counties to find that home ownership will be more affordable in a majority of the country again in 2022. Todd Teta, Chief Product Officer at ATTOM, said home ownership still remains the more affordable option for average workers because it takes up a smaller portion of their pay when the math is…

Forbearance Exits Remain High

Of single-family homeowners who entered Covid-19 related forbearance, 89% have now exited their plans. Active forbearance plans dropped by 43,000 (-8%) in the first week of January, according to Black Knight’s blog, Vision. The number of loans in forbearance fell across all categories, led by a 22,000 (-8%) drop in forborne loans held by portfolios and PSLs. Forbearances on FHA/VA loans fell by 17,000 (-16%) and GSE loans fell by 4,000 (-1.6%). The number of active plans is down 100,000 (-12%) from last month. An additional 155,000 plans are up for extension or removal in January. However, less than a third are expected to expire, meaning exit volumes will lessen moving forward. New plan starts rose again, reaching their highest…

Morning Roundup (1/13/2022)– Foreclosure Filing All-Time Low, Mortgage Applications Up

Good Morning! Today is Thursday, January 13. Donald Trump endorsed booster shots and said politicians who hid their vaccination status were “gutless.” Kevin McCarthy, the top House Republican, said he would not cooperate with the House committee investigating the Capitol riot. More than 8,000 unionized employees at Kroger’s King Soopers stores in Denver went on strike on Wednesday. And in mortgage and housing news… Mortgage Applications Up: Mortgage loan application volume rose 1.4% from last week, though refis once again fell, MBA reported. All-Time Low: ATTOM’s Year-End Foreclosure Market Report found foreclosure filings dropped to an all-time low in 2021, down 95% from a peak of nearly 2.9 million in 2010. Forty-Year High: The BLS’s Consumer Price Index reported that…

Foreclosures Activity Hits Record Low

ATTOM Data Solution’s Year-End 2021 U.S. Foreclosure Market Report found foreclosure filings dropped 29% from 2020 and were down 95% from a peak of nearly 2.9 million in 2010. It is the lowest level since ATTOM began tracking filings in 2005. Properties with foreclosure filings–default notices, scheduled auctions, and bank repossessions– made up 0.11% of all U.S. housing units, down from 0.16% in 2020. “The COVID-19 foreclosure tsunami that some people had anticipated is clearly not happening,” said Rick Sharga, executive vice president at RealtyTrac, an ATTOM company.  The report is heartening from a broad view of foreclosure filings in the US. However, it found that filings increased as protections expired, pushing rates closer to pre-pandemic levels. A total of…

Morning Roundup (1/7/2022)– Rates Climb To Highest Level Since May 2020

Good Morning! Today is Friday, December 7. President Biden accused Donald Trump of spreading a “web of lies about the 2020 election.” The Supreme Court will hear arguments today in cases challenging the Biden administration’s vaccine mandates. Canada’s ban on conversion therapy takes effect today. And in mortgage and housing news… Rates Climb: Mortgage rates rose to their highest level since May 2020, up to an average of 3.22%, Freddie Mac reported. Forbearances Improve: Active forbearance plans dropped by 8% in the first week of January, according to Black Knight’s blog, Vision.  December Jobs: The US economy added just 199,000 jobs in December, far below economists’ expectations of 422,000 gains. FHFA Changes Explained: The FHFA this week announced loan-level price…

Morning Roundup (1/3/2022)– Migration From Cities, Affordability Down In November

Good Morning! Today is Monday, January 3. We hope you had a wonderful holiday and wish you the best in 2022!For today’s newsletter, we had Scott Kimbler look into the migration from U.S. metros to suburban and rural areas. Is It A Trend Or Here To Stay? Metros See Migration From Cities: Metros are seeing a migration away from urban areas, and those watching this trend say landlords shouldn’t hold their breath hoping a younger generation of renters will replace them. Affordability Reaches 13 Year Milestone: In Q4 2021, median-priced single-family homes were less affordable in 77% of U.S. counties analyzed by ATTOM Data Solutions, a 13-year high, the company found. New Record For Home Prices: The median home sale…