Mortgage applications slipped slightly last week as rates rose again.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – fell by 0.8%, a much softer decline than the week prior’s 3.1% drop.
MBA attributes recent declines to rising rates. The average interest rate for 30-year fixed loans rose from 7.09% to 7.16%, pushing homeownership farther out of reach for many Americans. This is the third straight week of increases.
Adjusted purchase applications fell by 0.2%, while the unadjusted index dipped 2% from the week before and was 26% lower YOY.
Refinances continued to be hobbled by the high rate environment, down by 2% and 35% lower than the…
By KIMBERLEY HAAS
Fannie Mae and Freddie Mac were affected this week after Fitch Ratings downgraded the country’s credit rating.
On Tuesday, leaders at Fitch issued a press release saying they had downgraded the United States of America’s Long-Term Foreign-Currency Issuer Default Rating from AAA to AA+.
Fitch is one of three nationally recognized statistical ratings organizations. The other two are Moody’s Investors Service and S&P Global Ratings.
Expected fiscal deterioration over the next three years, a high and growing general government debt burden, and the erosion of governance were cited as reasons for the downgrade.
“The repeated debt-limit political standoffs and last-minute resolutions have eroded confidence in fiscal management. In addition, the government lacks a medium-term fiscal framework, unlike…
Fitch Ratings’ Q2 RMBS Servicer Metric Report found late-stage non-prime delinquencies down year-over-year (YOY) for both bank and non-bank mortgage servicers. Bank servicers reported a drop in 90+ day delinquencies, from 13% to 10% YOY, down 12% last quarter. Non-bank servicers saw a drop from 8% to 4% YOY, with a 2% fall from Q1. The numbers suggest that holders with loans in forbearance might be financially recovering and exiting policies before many expire. “Bank servicers showed the most significant loss mitigation results over the past year with forbearance plans now down to 38% from 93% of all loan workout plans while repayment plans and loan modifications have seen significant increases as borrowers exit forbearance plans,” said Director Richard Koch. “Non-bank servicers are…
