Mortgage loan application volume rose 5.5% last week, responding to interest rate dips, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, fell 5.5% on an adjusted basis. The Refinance Index jumped 7% and was 28% lower than a year ago, rebounding from last week’s drop to its lowest level since July 2021. The seasonally adjusted Purchase Index rose 3%, while the unadjusted Purchase Index rose .1% compared to the week before, down 4% from the previous year. Interest rates fell to 3.09% after several weeks on the rise, with the 30-year fixed rate falling 14 basis points over the last two weeks. Applications, especially for refinancing, dropped alongside them. “Although overall activity…
Mortgage credit availability rose only slightly in October, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). The index analyzes data from Ellie Mae’s AllRegs Market Clarity business information tool. The MCAI rose to 125.7 by only 0.1, showing credit loosened just a little. The Conventional MCAI increased 0.1%, while the Government MCAI was unchanged. The Jumbo MCAI increased by 4.1%, and the Conforming MCAI fell by 6%. While any increase in credit availability is good, overall credit availability remains low. “Credit availability inched forward in October, but the overall index was 30 percent lower than February 2020 and close to the lowest supply of mortgage credit since 2014,” said Joel Kan, MBA’s Associate Vice President of…
Good Morning! Today is Tuesday, November 9. Four SpaceX astronauts returned to Earth after 200 days in orbit. The Justice Department charged a Russian man with conducting cyberattacks and recovered $6 million in ransom. A missing girl was recovered after a motorist noticed her using an emergency hand signal that has gained attention on TikTok. And in mortgage and housing news… HPSI Stays Flat: Consumers have mixed feelings about the housing market and are slightly more pessimistic about the economy overall, especially when it comes to their personal finances. Forbearances Improve Again: The number of loans in forbearance dropped to 1 million as homeowners exited their plans, most entering modifications. Inflation Fears Climb: Inflation fears rose for the 12th consecutive…
Consumers continued to feel pessimistic about the housing market in October, reporting mixed feelings about buying and selling homes and worries over the economy overall. Fannie Mae’s Home Purchase Sentiment Index stayed relatively flat, rising only one point in October to 75.5. The index’s six components increased month-over-month (MOM) but are down 6.2 points year-over-year (YOY.) A somewhat larger group of consumers from last month said it’s a good time to buy a home (30%, +2%) or sell a home (77%, +3%), and report they expect mortgages will increase over the next 12 months. The net share of respondents who say it’s a good time to buy a home rose 3% MOM. The share of respondents who expect home prices…
Forbearances fell for another week, but that does not mean homeowners have completely recovered from their economic losses due to the COVID-19 pandemic. The total number of forborne loans is down to 2.06% of servicers’ portfolio volume, according to the Mortgage Bankers Association’s (MBA) latest survey. The estimated number of homeowners in forbearance plans dropped to around 1 million. “More borrowers who exited forbearance the last week of October went into modifications, a sign that they have not yet regained their pre-pandemic level of income,” said Mike Fratantoni, MBA’s Senior Vice President and Chief Economist. The national median household income has fallen 2.9% from 2019 to 2020, and is now $67,521. It is the first decline since 2011, and early…
Good Morning! Today is Monday, November 8. A federal appeals court in Louisianna temporarily blocked the Biden administration’s vaccine mandate. Foreign travelers may now enter the US with proof of vaccination or a negative Covid test. A “concert surge” in Houston left eight dead and prompted a criminal investigation. And in mortgage and housing news… Rocket Q3 Results: Rocket Companies’ Q3 revenue bested analyst expectations, and the company expects to top 10% market share in 2022. Housing Shortage “A Mirage”: Going against industry consensus, housing analyst Ivy Zelman claims that housing production is already ahead of normalized demand. “We’re Going To Have To Build A Lot Of Homes”: On the other hand, lumber firm Weyerhaeuser’s CEO predicts the housing market will remain strong for five to ten more…
The hot housing market has been attributed to historically low-interest rates, Millennials reaching homebuying age, and a desire for spacious living created by the pandemic. Across the industry, experts agree that all of this has been exacerbated by a shortage of houses that started with underbuilding in the aftermath of the 2008 financial crisis. Everyone except Ivy Zelman, the housing analyst who foresaw the financial crisis in 2005. In a report, her firm, Zelman and Associates, claims that housing demand is overblown and that the country is already on a path to building too many houses. “The perception that housing is drastically undersupplied and that a strong demographic picture lies ahead is creating a false sense of security,’’ the report…
Good Morning! Today is Friday, November 5. Employers added 531,000 jobs last month, while the unemployment rate fell to 4.6%. Eleven states have filed lawsuits against President Biden’s vaccination mandate for employers. A high school principal is apologizing for lack of sportsmanship after their football team won a game with a score of 106-0. And in mortgage and housing news… Own to Rent?: Forbearance exits picked up in the final week of October, with the number of active plans dropping 23% month-over-month as some owners opt to sell and become renters. Commissions Falling Alongside Refis: Loan officer commission dropped 17% YOY in Q3 2021 as rising interest rates cause refi slowdowns. Meet The New Boss?: The White House is asking…
Some homeowners have opted to sell their houses rather than restart their active forbearance plans, leading to a 13% increase year-over-year in the nation’s supply of affordable homes. “The end of forbearance has forced many lower-income Americans to put their homes up for sale and become renters,” said Redfin Chief Economist Daryl Fairweather. “This has caused the number of affordable homes on the market to surge, helping replenish inventory amid an acute housing shortage. It’s a rainstorm after a long drought, but the drought isn’t over yet.” Forbearance exits picked up in the final week of October, according to Black Knight’s blog, Vision. The number of loans in active forbearance fell by 6.9%, with 85,000 homeowners exiting their plans. Forbearance…
Good Morning! Today is Thursday, November 4. OSHA is expected to release its ’emergency order’ mandating vaccines for employees of large businesses. The U.K. approved a pill designed to treat symptomatic Covid. The attorney for the armorer on “Rust” suggested the live round that killed a woman may have been an act of “sabotage.” And in mortgage and housing news… Fed Says Tapering Is On: The Federal Open Market Committee laid out a framework for tapering its emergency bond-buying, but rate hikes weren’t discussed. Affordable Housing Up: The supply of affordable homes jumped 13% YOY in Q3, though supply dropped in the luxury market. Will Rising Rates Help Or Hurt?: Rising interest could hurt homebuyers by raising their monthly payments,…
