Refinances bounced up last week due to a brief drop in interest rates, the Mortgage Bankers Association’s (MBA) weekly survey found. Overall, mortgage loan application volume rose 8.5% last week, reversing a weeks-long downward trend. This is likely the result of spring inventory trickling into the market, though the lower rates may have played a role. The adjusted purchase index rose 9%, while the unadjusted purchase index rose 11% and was 7% lower YOY. The refinance index jumped 9% and was down 50% YOY. Refinances made up 49.5% of total applications, a slight dip as overall volume increased. Government refinances made big gains in particular. “Mortgage rates dropped for the first time in 12 weeks, as the war in Ukraine…
U.S. home prices have broken another record: 8% of homes (6 million) are now worth $1 million or more, according to a new report from Redfin. That is nearly double the share from before the pandemic when the share was only 4.8% (3.5 million). The Bay Area has the biggest share of million-dollar homes, with nearly nine out of 10 properties in San Francisco and San Jose making the list. This isn’t surprising given its long history of being the most expensive place to buy a home in the U.S. Anaheim, CA, saw the biggest increase, with its share of million-dollar homes jumping to 55% from 27% two years ago. California dominated the top five, following up with Oakland (55.1%),…
Good Morning! Today is Tuesday, March 8. Ukrainians defended two crucial cities yesterday, shooting down three Russian fighter jets over Kyiv and preventing troops from entering Mykolaiv, on the Black Sea coast. Florida will recommend that healthy children not get a vaccine, contradicting the C.D.C. The Mortgage Note Reports Working With Professionals In Person Is Important When Buying Property: The CEO of Comey & Shepherd in Cincinnati says there is something to be said for working with realtors and mortgage lenders in person at a time when it seems like more and more of the home buying process can be done from a cell phone. Big City Glow Up: Gen Z is reviving urban hotspots assumed to be dying out …
U.S. delinquencies hit their lowest level ever recorded by CoreLogic in December 2021, the result of improving employment and soaring equity, the company’s Loan Performance Insights Report revealed. Only 3.4% of all mortgages were in some stage of delinquency (30 days or more past due), down 2.4% annually. This is the lowest recorded delinquency rate since at least January 1999. Delinquencies declined in every state, with the largest drops in Nevada, Hawaii, Florida, New Jersey, and New York. Early-stage delinquencies (30-59 days past due) accounted for 1.2% of mortgages, down from 1.4% YOY, while adverse delinquencies (60-89 days) fell from 0.5% to 0.3%. Serious delinquencies (90 or more days), which peaked at 4.3% in August 2020, saw a serious drop…
Gen Z is reviving urban hotspots assumed to be dying out due to Covid-19, a new report from RentCafe found. Gen Z is the only generation to see a spike in renting activity in the last year, up by 21% while the share of rent applications from all other generations dropped. They account for a quarter of all rent activity nationwide and pushed the number of applications for apartments from renters of all generations up an average of 10%. In 2020, Zoomers were stuck in their families’ hometowns or in their college towns. But now, following promises of job opportunities and vibrant living, they’re renting in cities once thought doomed in the wake of the pandemic. Compared to 2020, there…
Good Morning! Today is Monday, March 7. Ukrainian resistance stalled Russian forces this weekend, driving them from the port city of Mykolaiv. This morning, Russia launched an artillery barrage there. Tornadoes in Iowa killed seven people and destroyed dozens of homes. The Mortgage Note Reports America’s Most Expensive Home Sets Record At Auction, New Owner Revealed: A Bel Air megamansion that was listed on the market for $295 million has been purchased at auction by the 40-year-old CEO of Fashion Nova. Fannie HPSI: Fannie Mae’s Home Purchase Sentiment Index rose this month despite consumers’ surly attitudes toward home prices and rising interest rates. loanDepot Promotion: Min Kim has been promoted to EVP, Marketing and Analytics at loanDepot. And in other…
More consumers than ever think mortgage rates and home prices will continue to rise, according to Fannie Mae’s Home Purchase Sentiment Index (HPSI). The HPSI rose by 3.5 points to 75.3 in February, with five of the index’s six components increasing month-over-month despite respondents’ surly attitude towards home prices and interest rates. However, the full index dropped 1.2 points year-over-year (YOY). The “Good Time to Buy” component is still hovering near its record low, with consumers saying they are deterred from homebuying by high prices. Respondents to the survey said they feel an improved sense of job security, but a significantly greater share– 67%, a record high for the HPSI– assume mortgage rates will rise higher. The report notes this…
Mortgage lending dropped at its fastest pace in almost three years in Q4 2021, down for the third quarter in a row and the largest decrease since late 2018, according to ATTOM’s Q4 2021 U.S. Residential Property Mortgage Origination Report. The report found that 3.27 million mortgages were originated in Q4 2021, or $1.06 trillion worth of mortgages. This is down 11% from Q3 2021 and 13% from Q4 2020. All three categories of conventional loans– purchase, refi, and home equity– saw quarterly declines, with only purchases remaining up year-over-year (YOY). Refis were down 11% from Q3 2021 and 23% YOY, with 1.81 million home loans refinanced. Q4 was the third straight quarter of refi declines. The dollar volume of…
Mortgage rates fell again last week, dropping to an average of 3.76% from 3.89%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.76%. A year ago at this time, the 30-year FRM averaged 3.02%. “While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty,” Freddie Mac Chief Economist Sam Khater said. “Consequently, rates are expected to stay low in the short term but will likely increase in the coming months.” The Fed said that it still plans to raise rates later this month despite uncertainty surrounding the Ukraine conflict. Fed Chairman Jerome Powell said the central bank would stick to its plan to reduce…
Good Morning! Today is Thursday, March 3. Russia has continued to attack major cities in Ukraine, creating a humanitarian crisis. The Jan. 6 committee said there was evidence to conclude that Donald Trump may have committed crimes to try to stay in office. Fitbit is recalling its Ionic smartwatch after reports of overheating batteries. The Mortgage Note Reports Loan Factory’s Nguyen Says UWM Ultimatum ‘Has Divided Our Community’: In a one-on-one interview with The Mortgage Note, Nguyen explains why he chose to stop doing business with Mat Ishbia’s company rather than agree to it’s ‘All In’ ultimatum. Weak App Activity: Mortgage loan application volume fell 0.7% last week, faring slightly better than the prior week’s 13.1% drop but continuing a trend…
