Overall foreclosure rates were up 11% month-over-month in February as foreclosure starts soared, according to ATTOM’s February 2022 U.S. Foreclosure Market Report. A total of 25,8333 properties had foreclosure filings (default notices, scheduled auctions, or bank repossessions). This is a 129% increase from the same time last year. Rick Sharga, executive vice president at RealtyTrac, an ATTOM company, said foreclosure activity this year will mimic February’s growth. “This isn’t an indication of economic turmoil, or of weakness in the housing market; it’s simply the gradual return to normal levels of foreclosure activity after two years of artificially low numbers due to government and industry efforts to protect financially-impacted homeowners from defaulting,” he said. Foreclosures hit their lowest level ever recorded…
Mortgage loan application volume fell 13.1% last week, continuing last week’s trend down, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped 13.1%. The adjusted purchase index fell 10%, while the unadjusted purchase index fell 6% and was 6% lower YOY. The refinance index fell 16% and was down 56% YOY. Refinances made up 50.1% of total applications. “Mortgage applications dropped to their lowest level since December 2019 last week, as mortgage rates continued to inch higher. The 30-year fixed rate was 4.06%, almost a full percentage point higher than a year ago. Higher mortgage rates have quickly shut off refinances, with activity down in six of the…
The number of loans in forbearance fell 11% in January to 1.30% of servicers’ portfolio volume, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. MBA now estimates that 650,000 homeowners remain in forbearance plans. This is the second consecutive month that forbearance exits hit a new low since June 2020. Of Fannie and Freddie loans, the number in forbearance dropped 4 basis points to 0.68%. Ginnie Mae loans saw a 3 basis point drop to 1.60%, while PLS and portfolio loans saw a 41 point decline to 3.02%. But re-entries and new forbearance requests rose, especially for Ginnie Mae loans. While forbearances keep falling, January saw the smallest monthly decline in a year. Of all forborne loans, 26.8%…
Active forbearance plans rose by 11,500 plans (1.5%) last week, following a “typical pattern of mid-month restart activity”, according to Black Knight’s blog, Vision. Forborne loans held by portfolios and PSLs increased by 7,600 (3.1%), while FHA/VA loans in forbearance rose by 4,900 (1.8%). In contrast, GSE plans actually fell by 1,000 (-0.4%). Plan volumes are down 38,100 (-4.7%) month-over-month. Black Knight notes that as many homeowners have already exited their plans, expiration activity is slowing. Moderating improvement is the result of this “gradually flattening slope.” Some 129,000 plans are up for review in early March, the next time Black Knight expects to see significant improvement. One-third should expire. ATTOM Data Solutions reported that foreclosure-related filings jumped 29% from December and…
Mortgage rates jumped to 3.92% from 3.69% this week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.96%. A year ago at this time, the 30-year FRM averaged 2.81%. “Mortgage rates jumped again due to high inflation and stronger than expected consumer spending,” said Sam Khater, Freddie Mac’s Chief Economist. “The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets.” Demand remains high despite rising rates. Rate locks for purchase loans increased 19.9% month-over-month in January. “The…
Good Morning! Today is Wednesday, February 16. Republicans boycotted a Senate meeting on Biden’s five nominees to the Federal Reserve, delaying efforts to confirm them. A woman became the third person cured of H.I.V. after using a new treatment. The families of Sandy Hook victims reached a $73 million settlement with Remington. The Mortgage Note Reports UWM Embattled on Multiple Fronts: United Wholesale Mortgage is facing more public scrutiny as court battles — and backlash from brokers — mount. Million Or More: “Million-dollar cities” nearly tripled in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Credit Availability Drops: Mortgage credit availability fell in January by 0.9% to its lowest level since…
“Million-dollar cities” skyrocketed in 2021, with typical home values reaching at least $1 million in a record 146 new U.S. cities. Zillow found there are now 481 cities where the average home is worth $1 million or more, and an additional 49 cities could make the list by mid-2022 if home appreciation continues at its current rate. Typical home values jumped 19.6% in 2021 as homebuyers faced severe stock shortages, causing bidding wars that pushed prices up. Homeowners gained $2.6 trillion in tappable equity in 2021, up by 35% YOY for an aggregate total of almost $10 trillion. In Q4 2021 alone, tappable equity rose by nearly half a billion dollars. “Home price appreciation over the course of 2021 was…
Overall rate locks rose 9.5% month-over-month in January, with a 19.9% increase for purchase loans and a 9.2% increase for cash-outs, Black Knight reported in its Originations Market Monitor. Rate/term refinance locks dropped for the fifth month straight, down 16.5% to its lowest level since May 2019. It is an 80% decline YOY. The refinance share of January originations fell to 43%, its lowest since July 2019. “With some $10 trillion in homeowner tappable equity in the market, it makes sense that we’d see cash-out refinance locks on the rise,” Happ said. “The significant jump in purchase originations can likely be attributed in part to typical pent-up, post-holiday demand. It could also represent skittish homebuyers hoping to lock in a…
Good Morning! Today is Friday, February 11. Biden is moving to split $7 billion in frozen Afghan funds between 9/11 victims’ families and humanitarian aid in Afghanistan. Congress passed a bipartisan bill giving survivors of sexual misconduct greater rights to sue. Super Bowl LVI is poised to be the most bet upon game in football history as the legalization of sports betting grows. The Mortgage Note Reports Which City Would Win In The Super Bowl Of Housing Markets?: It’s Super Bowl weekend and The Mortgage Note is taking a look at which city would win if Los Angeles and Cincinnati’s housing markets were pitted against each other. Black Knight: Forbearance plans fell by 4% last week, slowing as the number of active…
Active forbearance plans fell by 29,000 plans (-4%) last week, according to Black Knight’s blog, Vision. Forborne loans held by portfolios and PSL dropped 22,000 (-8%), while GSE plans fell by 8,000 (-2%). FHA/VA loans in forbearance fell by 1,000 (0.4%). After falling last week, restarts once again rose while new plan starts remained the same. Plan volumes are down 18,000 (-2%) month-over-month. Black Knight notes that as many homeowners have already exited their plans, expiration activity will slow. Moderating improvement is the result of this “gradually flattening slope.” Some 150,000 plans are up for review in the coming weeks, with a third expected to expire. In a recent webinar, RealtyTrac EVP Rick Sharga and Mortgage Policy Advisors Managing Director…
