MBA: Mortgage Applications Up

Mortgage loan application volume rose 4.9% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Unadjusted, the purchase index increased 16% over last week. Mortgage application volume fell by 1.9%, with purchase applications rising 2%. On an unadjusted basis, purchase applications increased 12% over the week before, 13% lower than the year before. The share of refinance applications rose 7% and was 5% lower year-over-year. The numbers are in line with an upward trend that began last week when loan applications bounced back from a low point. “There was a resurgence in mortgage applications the week after Labor Day, with activity overall at its highest level in over a month, and purchase applications jumping to a high last seen…

MBA: August New Home Purchases Up From July, Down From Year Ago

August new home purchase applications fell 17% year-over-year, according to the Mortgage Bankers Association’s Builder Application Survey. However, applications were up 9% compared to July. The report shows new home sales rose 12% in August, the fastest pace of sales since January. MBA estimated that new single-family home sales made up 874,000 units with seasonal adjustments. Unadjusted, MBA estimated there were 71,000 new home sales, up 10.9% from July. “Mortgage applications to purchase new homes were down in August compared to 2020’s late-summer surge, but both mortgage applications and MBA’s estimate of new home sales jumped last month compared to July,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.  “While the new home construction market is…

MBA: Forbearances Fall To 3%

Forbearances fell again this week, continuing to trend down as relief plans expire, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up 3.00% of servicers’ portfolio volume, down from 3.08%. That puts the estimated number of homeowners in forbearance plans at around 1.5 million. That’s a significant change from last year. In May 2020, the use of the forbearance provision peaked at about 3.4 million mortgages, representing about 7% of all single-family housing loans. For Fannie Mae and Freddie Mac loans, the August 2021 number was down five basis points to 1.47%. Ginnie Mae loans held at 3.39%. Portfolio loans and private-label securities shares fell 32 basis points, from 7.27% to 6.95%. Independent mortgage bank servicers saw…

Mortgage Application Volume Bounces Back

Mortgage loan application volume bounced back from last week’s low, rising 0.3%, according to the Mortgage Bankers Association’s (MBA) weekly survey. Purchase mortgage activity grew 8%, driving the increase. Last week’s numbers hit their lowest point since Mid-July, largely due to a 3% drop in refinancing. Refi dropped another 3% this week, but purchase mortgage applications made up for it, reaching their highest level since April. “Compared to the same week last September, which was right in the middle of a significant upswing in home purchases, applications were down 11%– the smallest year-over-year decline in 14 weeks,” said Joel Kan, associate vice president of economic and industry forecasting. The average loan size for a purchase application also rose, to $396,800.…

MBA: Good News As Share Of Loans In Forbearance Nosedives

The total number of loans in forbearance took a nosedive this week, with numbers down in every category, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up 3.08% of servicers’ portfolio volume, down from 3.23%. That puts the estimated number of homeowners in forbearance plans at 1.5 million. For Fannie Mae and Freddie Mac loans, the number fell 11 basis points to 1.52%. Ginnie Mae loans fell from 3.63% to 3.39%. Portfolio loans and private-label securities shares fell 25 basis points, from 7.52% to 7.27%. Independent mortgage bank servicers saw a drop of 16 basis points to 3.33%, and depository servicers saw a drop of 18 basis points to 3.15%. “The share of loans in forbearance decreased…

Mortgage Applications Down 2.4% Last Week

Despite no change in historically low mortgage rates, mortgage applications dropped 2.4% last week, according to the Mortgage Bankers Association’s Weekly Mortgage Application Survey. The MBA said the decline in its seasonally adjusted market composite index tracking mortgage applications was influenced by a 3.8% decline in applications to refinance existing loans. “There was little change in mortgage rates last week, with the 30-year fixed remaining at 3.03 percent. Despite low rates, refinance applications declined, with some borrowers still waiting for rates to drop even lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.  “Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated…

MBA Vows To Work With Biden Administration

The Mortgage Bankers Association congratulated former Vice President Joe Biden for his victory in the presidential election, vowing to work with his administration on affordable housing and to assist homeowners impacted by the pandemic. “MBA looks forward to working with President-elect Biden, Vice President-elect Harris, his administration, and the new Congress on the wide variety of issues impacting borrowers, renters, and commercial lenders and property owners,” said Robert D. Broeksmit, President & CEO of the Mortgage Bankers Association. “This includes access to affordable housing for all Americans; helping first-time homebuyers enter the market; assisting owners, renters, and landlords negatively affected by the COVID-19 pandemic; and ensuring liquidity and a level playing field for lenders and borrowers alike.” In February, Biden…

SWBC’s Susan Stewart Named MBA Chairman

SWBC Mortgage Corporation CEO Susan Stewart was sworn in as chairman of the Mortgage Bankers Association on Monday at the group’s virtual annual convention. Additionally, Wells Fargo Executive Vice President Kristy Fercho was named chairman-elect and Grandbridge Real Estate Capital CEO Matt Rocco was named vice chairman of the association. “It is a privilege to serve as MBA’s 2021 Chairman,” Stewart said. “I look forward to working with Kristy and Matt to address the challenges facing our industry, as well as help MBA members deal with the issues most affecting their businesses.” Fercho joined Wells Fargo in 2020 from Flagstar Bank, where she had served as president of the company’s mortgage division since 2017. Rocco joined Grandbridge, a subsidiary of…

U.S. Mortgages In Forbearance Top 4 Million

The share of mortgages in forbearance in the United States has swollen to 7.91 percent, but the rate of growth has slowed in recent weeks, according to the latest report by the Mortgage Bankers Association released Monday. The MBA estimates that 4 million American homeowners were in forbearance plans as of May 3. “With the calendar turning to May, the share of loans in forbearance increased, but the pace of the increase and incoming forbearance requests continued to slow,” said Mike Fratantoni, MBA Senior Vice President and Chief Economist. “The dreadful April jobs report showed a decline of more than 20 million jobs, and a spike in the unemployment rate to the highest level since the Great Depression. It will…

Mortgage Applications Go Largely Unchanged

Mortgage applications dipped slightly last week, falling 0.3 percent from a week earlier, according to the latest report released Wednesday by the Mortgage Bankers Association. The Refinance Index decreased 1 percent last week, but was 225 percent higher than the same week one year ago – driven by historically low interest rates. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 3 percent compared with the previous week and was 31 percent lower than the same week one year ago. “Mortgage applications were essentially unchanged last week, as a slight drop in refinance activity was offset by a 2 percent increase in purchase applications,” said Joel Kan, MBA’s Associate Vice President of…