Rate Lock Activity Rose In March

Rate lock activity rose in March as homeowners move before rates rise further, according to Black Knight’s latest Originations Market Monitor report. Mortgage rates exceeded 4.9% in March but dropped at the end of the month to 4.79%. The spread between mortgage rates and 10-year Treasuries climbed 20 basis points. “Mortgage interest rates spiked in March, with 30-year offerings climbing 70 basis points over the course of the month,” said Scott Happ, president, Optimal Blue, a division of Black Knight.  “And yet, despite seeing the fastest one-month rise in rates in nearly 13 years, we saw purchase lock volumes increase by 31% from February – likely as prospective buyers moved to lock in their loans before rates climbed any higher.”…

Forbearances Fell Below 700k For The First Time Since The Pandemic Began

Early April exits offset two weeks of rising forbearance starts and re-starts, resulting in plan volumes dropping below 700,000 for the first time since the pandemic began, according to Black Knight’s blog, Vision. Overall, forbearances fell by 63,200 plans last week. GSE plans fell by 24,500 (-11%), followed by FHA/VA (-21,800, -8.1%) and loans held by portfolios and PSLs (-17,000, -16.7%). New plan starts still rose slightly, up to 10,300 (+200). However, last week they dropped to their lowest level in four months, so the uptick may not be cause for concern. Restarts also rose by 1,400 to 21,600. Plan volume is down 66,200 (-8.8%) month-over-month.  Forbearance volumes have ticked up some after long periods of decline, but are generally…

U.S. Mortgage Markets Heat Up As Interest Rates and Prices Rise

By SCOTT KIMBLER Potential homebuyers are rushing to mortgage offices to make sure they get a loan before prices and interest rates go even higher. Mortgage rates jumped again to an average of 4.67%, up from last week’s 4.42%, Freddie Mac reported Thursday. At the same time, the spring selling season is looking promising for sellers. Home prices rose 1.84% in February and 19.6% year-over-year – the largest annual gains on record – according to Black Knight’s Monthly Mortgage Monitor Report. These numbers, along with an awkward supply and demand situation, are pushing some buyers who are in a position to do so to go ahead with their home purchase now.  Jerry Stover, sales manager with Homeowners Financial, said this has been…

Home Prices Saw Largest Ever Annual Gains In February 2022

Home prices rose 1.84% in February and 19.6% year-over-year, the largest annual gains on record, according to Black Knight’s Monthly Mortgage Monitor Report. The 1.84% increase is nearly four times the 25-year average for the month and marks the 14th consecutive month of greater than 1% price growth. The average home has now increased in value by more than 34% since February 2020. All of the markets analyzed by Black Knight experienced double-digit annual home price growth in February 2022. Three-quarters of them saw continued acceleration of appreciation. Home price growth cooled off briefly last fall but reaccelerated in winter despite rising rates. Affordability is now at its lowest ever point outside of 2004-2007. The monthly principal and interest payment…

Morning Roundup (4/1/2022)– Rates, Forbearances Up

Good Morning! Today is Friday, April 1. Russia’s defense ministry announced a cease-fire in Mariupol. The U.S. imposed new sanctions on Russian technology companies. The House passed a bill to limit the cost of insulin to $35 a month, sending it to the Senate. The Mortgage Note Reports Rates Rise: Mortgage rates jumped again to an average of 4.67%. Forbearances Up Slightly: Forbearances rose slightly again last week, though new plan starts dropped to 10,100, the lowest level in four months. And in other mortgage and housing news… Jobs Report: The unemployment rate fell to 3.6% in March, while payrolls saw big gains, according to Labor Department data. Listing In April: Homes listed for sale in the second half of…

New Plan Starts Drop To Lowest Level In Four Months

Forbearances rose slightly again as late-month new plans and restarts offset early-month exits, according to Black Knight’s blog, Vision. Overall, forbearances rose by 3,700. Forborne loans held by portfolios and PSLs increased by 5,300 (2.1%). FHA/VA loans remained unchanged, while GSE plans fell by 1,800 (0.8%). New plan starts dropped to 10,100, the lowest level in four months. Restarts fell by 11,500 to 20,200. Plan volume is down 40,000 (-5.1%) month-over-month.  Forbearance volumes have ticked up some after long periods of decline, but are generally improving as the country recovers from the pandemic. The number of homeowners with existing loan workouts who were current on their payments rose in February for the first time since June 2021. “We can credit…

Forbearances Increase For Second Week

Forbearance plans rose for a second week, according to Black Knight’s blog, Vision. Overall, forbearances rose by 17,400 (2.4%). Forborne loans held by portfolios and PSLs drove the week with an increase of 7,800 (3.3%). FHA/VA loans saw an increase of 5,000 (3.3%), while GSE plans rose by 4,500 (2%). Black Knight said this week’s numbers “extended their upward trend this week following a typical pattern of increased mid-month restarts.” New plan starts held steady this week at 11,200, though restarts increased by 6,000 to a total of 31,700. Plan volume is down 47,000 (-6%) month-over-month.  The increase this week comes on the heels of a major drop in plans two weeks ago, so rates remain historically low. An analysis…

Forbearance Plans Up In Typical Mid-Month Pattern

After dropping to a post-pandemic low, forbearance rose by 8,000 last week (1%), according to Black Knight’s blog, Vision. Forborne loans held by portfolios and PSLs drove the week with an increase of 9,000 (3.9%). It was slightly offset by FHA/VA loans in forbearance falling by 1,000 (-0.3%). GSE plans remained unchanged. Black Knight calls this a “familiar pattern,” in which the middle of the month brings an uptick in plans. They’ll even out next week. Notably, both new plan starts and restarts fell, with starts hitting their lowest weekly total since Thanksgiving. Plan volume is down 41,000 (-5%) month-over-month. The increase this week comes on the heels of a major drop in plans last week, so rates remain historically…

Morning Roundup (3/11/2022)– Rates Rise To 3.85%

Good Morning! Today is Friday, March 11. President Biden will call for suspending normal trade relations with Russia, which would raise tariffs for many Russian products. Baseball players and owners struck a deal on a new contract, ending a lockout. The federal government extended the mask mandate on airplanes and other public transportation through mid-April. The Mortgage Note Reports Rate Reversal: Mortgage rates rose to 3.85%, reversing a brief period of declines brought on by uncertainty surrounding Ukraine. Forbearances Down: Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight. And in other mortgage and housing news… Inflation Wreaks Havoc: The consumer price index for February rose 7.9% YOY, the highest level since…

Forbearances Drop To Post-Pandemic Low

Forbearance plans dropped to a post-pandemic low this week, falling by 49,800 (-6.5%), according to Black Knight’s blog, Vision. Forborne loans held by portfolios and PSLs drove the week with a decline of 20,300 (-8.1%), while FHA/VA loans in forbearance fell by 15,300 (-5.4%). GSE plans fell by 14,300 (-6.1%). Plan volumes are down 42,700 (-5.6%) month-over-month. Some 154,000 plans are up for review in early April, the next time Black Knight expects to see significant improvement. One-third should expire.  Overall foreclosure rates were up 11% month-over-month in February and 129% YOY as they return to pre-pandemic levels. Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, said foreclosure activity this year will mimic February’s growth. “This isn’t an…