Morning Roundup (1/14/2022)– Forbearance Exits Remain High, Rates Hit 3.45%

Good Morning! Today is Friday, January 14. The Supreme Court blocked the Biden administration from enforcing a vaccine-or-testing mandate for large employers. Australia canceled Novak Djokovic’s visa for a second time, days before the Australian Open. The leader of the far-right Oath Keepers militia was charged with seditious conspiracy in the Capitol riot investigation. And in mortgage and housing news… Forbearance Exits Remain High: Of single-family homeowners who entered Covid-19 related forbearance, 89% have now exited their plans, according to Black Knight. Rates Climb Again: Mortgage rates jumped significantly this week, up to an average of 3.45% from 3.22%, Freddie Mac reported. Vice Chairwoman: President Biden will nominate Sarah Bloom Raskin, a former top Treasury Department official, to serve as…

Interest Rates Jump to 3.45%

Mortgage rates jumped significantly this week, up to an average of 3.45% from 3.22%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.45%. A year ago at this time, the 30-year FRM averaged 2.79%. “Mortgage rates rose across all mortgage loan types, with the 30-year, fixed-rate mortgage increasing by almost a quarter of a percent from last week,” said Sam Khater, Freddie Mac’s Chief Economist. “This was driven by the prospect of a faster than expected tightening of monetary policy in response to continued inflation exacerbated by uncertainty in labor and supply chains. The rise in mortgage rates so far this year has not yet affected purchase demand, but given…

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…

Morning Roundup (1/12/2022)– Credit Availability Up, Delinquencies Down

Good Morning! Today is Wednesday, January 12. In an effort to keep kids in schools, the Biden administration will ship five million free rapid Covid-19 tests to K-12 schools each month. Celebrities including Kim Kardashian, Floyd Mayweather Jr., and Paul Pierce are being sued for allegedly leading investors into a cryptocurrency “pump and dump” scam. Maya Angelou has become the first Black woman on a quarter. And in mortgage and housing news… Credit Availability Up: Mortgage credit availability rose in December, according to MBA’s Mortgage Credit Availability Index. Zillow CDO: Zillow has hired Jenny Arden as the company’s first Chief Design Officer. Delinquencies Down: Mortgage delinquency fell to 3.8% in October 2021, down 2.3% YOY, according to CoreLogic’s latest Loan…

Morning Roundup (1/11/2022)– Multifamily Projections, Origination Activity Down

Good Morning! Today is Tuesday, January 11. The SEC has begun work on a plan requiring companies to routinely disclose information about their finances and operations. Chicago schools will reopen after the teachers’ union and the city struck a deal over Covid safeguards. The Biden administration announced that private insurers will cover the costs of eight at-home Covid tests per person per month. And in mortgage and housing news… Jaws Are Dropping: “The One” hit the market. This megamansion with 21 bedrooms and 42 bathrooms in Bel Air is listed for $295 million. Freddie’s Multi-Family Outlook: Freddie Mac’s annual multifamily outlook suggests another strong year with rent growth in all markets, led by the Sun Belt. Black Knight: Origination activity…

Multifamily To Remain Strong In 2022

Freddie Mac’s annual multifamily outlook projects another strong year, with rents continuing to increase despite an overall moderating market. The report projects that the Sun Belt will outperform slow-growing smaller markets in the Northeast and Midwest. “We believe the market will continue to grow in 2022, reflecting the strong multifamily fundamentals that drove the market to a record-breaking year in 2021,” said Steve Guggenmos, vice president of Multifamily Research & Modeling at Freddie Mac. “We anticipate rent growth in all markets in 2022 due to strong demand driven by improving economic conditions.” Growth broke records in 2021 thanks to changing migration patterns and strong economic conditions. Multifamily demand reached its highest ever levels during Q2 and Q3 of 2021, and…

Morning Roundup (1/10/2022)– UWM In-Office Fight Continues, Fraud Costs Rising

Good Morning! Today is Monday, January 10. A fire in a Bronx apartment building killed at least nineteen people. Russian forces have surrounded Ukraine on three sides as diplomats meet in Geneva for talks. “Power of the Dog” and “Succession” won top honors at the Golden Globes, which did not air this year due to criticism over ethical lapses and a lack of diversity. And in mortgage and housing news… Are UWM Workers Being Unreasonable?: United Wholesale Mortgage turned heads in the industry last week when it was reported that health officials are investigating the company after receiving complaints about how they are handling COVID, which lead some people to ask why employees in lending are expected to be in…

HPSI Suggests A Slower Housing Market In 2022

Fannie Mae’s Home Purchase Sentiment Index (HPSI) fell 0.5 points to 74.2 in December, the GSE reported. Three of the index’s six components fell month-over-month as consumers once again reported pessimistic views on the homebuying market. Year-over-year, the index rose by 0.2. A record-low 26% of respondents reported they believe it’s a good time to buy a home, while 76% said it’s a good time to sell.  This is a drastic drop from December 2020, when 50% said it was a good time to sell and 52% said it was a good time to buy. Month-over-month, the share of consumers that reported it’s a bad time to buy a home rose from 64% to 66%, while the net share 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…

Forbearances Plans Drop In First Week Of 2022

Active forbearance plans dropped by 73,000 (-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 30,000 plan decrease in FHA/VA loans (-10%). Forbearances on loans held by portfolios and PSLs fell by 17,000 (-8%) and GSE loans fell by 27,000 (-19%). The number of active plans is down 123,000 (-13%) from last month. Additional declines are expected with 61,000 plans still listed as extension/removal in December 2021, of which 25,000 are expected to expire. An additional 186,000 plans are up for extension or removal in January, though less a third are expected to expire. Forbearance plan starts ticked up once again, continuing a…