Mortgage loan application volume fell another 1.3% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 1.3%. The adjusted purchase index rose by 1%, while the unadjusted purchase index rose by 2% and was 6% lower YOY. The refinance index fell 5% and was down 62% YOY. Refinances made up 37.1% of total applications, down from 38.8%. The 30-year fixed-rate hit 5.13%, the highest since November 2018, resulting in refis falling to their slowest weekly pace since 2019. “Higher rates are increasing borrower interest in ARMs. Their share of applications last week was at 7.4%, which was the highest share since June 2019,” said Joel…
Good Morning! Today is Wednesday, April 13. New York Lt. Gov. Brian Benjamin was indicted on public corruption charges stemming from an alleged bribery scheme. Police named a “person of interest” related to the attack on a subway train in Brooklyn that left at least 23 people injured. The Mortgage Note Reports New Delinquency Low: Delinquencies dropped again in January to their lowest rate since at least January 1999 thanks to home price appreciation and the strong jobs market. Open Mortgage CCO: Open Mortgage has appointed Andrea Easter to be its first Chief Compliance Officer. And in other mortgage and housing news… PPI Report: The producer price index rose 1.4% in March and 11.2% from a year ago, both records…
Delinquencies dropped again in January to their lowest rate since at least January 1999 thanks to home price appreciation and the strong jobs market, according to CoreLogic’s monthly Loan Performance Insights Report for January 2022. Only 3.3% of all U.S. mortgages were in some stage of delinquency, a 2.3% drop YOY. January marked the tenth straight month of annual declines. Early-stage delinquencies (30 to 59 days past due) accounted for 1.2% of mortgages, down from 1.3% the year prior. Adverse delinquencies (60 to 89 days) were down from 0.5% in January 2021 to 0.3%. Serious delinquencies (90 days, including loans in foreclosure) were down from 3.8% to 1.8%. Serious delinquencies hit a record high of 4.3% in August 2020. CoreLogic…
Good Morning! Today is Tuesday, April 12. After meeting with Vladimir Putin, Austria’s chancellor said he feared Russia would intensify the brutality of its attacks. U.S. stocks fell Monday as Covid-19 lockdowns in China added to investors’ worries. Thirteen people have been transported to area hospitals after a shooting at a Brooklyn subway station. The Mortgage Note Reports Fast 15 Guarantee: Rocket Pro TPO is promising to clear eligible loans in no more than 15 business days and leaders there say they are able to guarantee these closing times because of the company’s investment in technology. Editor Kimberley Haas reports. Mortgage Monitor: Rate lock activity rose 19.1% month-over-month in March as homeowners move before interest rates rise further. IMB Profits…
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.”…
After a record-breaking year for independent mortgage banks, profits declined by 75 basis points in 2021, according to the Mortgage Bankers Association’s (MBA) Annual Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,339 on each loan they originated in 2021, down from the record $4,202 per loan in 2020. Average production volume totaled $4.9 billion per company, up from $4.5 billion in 2020. But production expenses took a toll on profits, reaching their highest level since 2008, the first year of MBA’s report. Personnel expenses for sales, fulfillment, and production support all rose while revenues fell. “2021 was another stellar year for independent mortgage bankers, with production profits well above…
Good Morning! Today is Monday, April 11. Pittsburgh Steelers quarterback Dwayne Haskins was killed by a dump truck while trying to cross a highway on foot in South Florida. Biden will announce a new firearm regulation Monday meant to contain the use of privately made weapons. Elon Musk has decided not to join the board of Twitter. The Mortgage Note Reports Office Space Vacancies: Writer Chuck Green reports that office vacancy rates are being monitored closely as the commercial space industry continues to grapple with COVID’s effects on the workplace. Vacation Home Demand: Second-home demand fell for a second straight month as rising rates and increased fees deter buyers. Better Loses Another Exec: Better.com CTO Diane Yu is stepping back…
Second-home demand fell for a second straight month as rising rates and increased fees deter buyers, Redfin reported. Mortgage-rate locks for second homes dropped to their lowest level since May 2020 in March, though still remained 13% above pre-pandemic levels. “The pandemic-driven surge in sales of vacation homes is coming to an end as mortgage rates rise at their fastest pace in history, causing some second-home buyers to back off,” said Redfin Deputy Chief Economist Taylor Marr. “When rates and prices shoot up so much that a vacation home starts to look more like a burden than a good investment and a fun place to bring your family on the weekends, a lot of prospective buyers have second thoughts.” A…
Good Morning! Today is Friday, April 8. The Senate confirmed Judge Ketanji Brown Jackson to the Supreme Court. She will be the 116th justice and first Black woman on the Court. The New York attorney general asked a judge to hold Trump in contempt for not turning over documents in an investigation. The Mortgage Note Reports Mortgage Rates Up Again: Mortgage rates rose to an average of 4.72%, up from last week’s 4.67%, continuing their climb towards 5%. Forbearance Improvements: 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. And in other mortgage and housing news… Credit Availability Down: Mortgage credit availability…
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…
