Mortgage loan application volume plummeted by 5% 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 5%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 2% and was 14% lower YOY. The refinance index fell 8% and was down 68% YOY. Refinances made up 35.7% of total applications, down from 37.1%. Mortgage rates reached 5.20%, the highest level since 2010. “Ongoing concerns about rapid inflation and tighter US monetary policy continued to push Treasury yields higher, driving mortgage rates to their highest level in over a decade,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. …
Good Morning! Today is Thursday, April 14. The U.S. will send another $800 million in military aid to Ukraine, and it will share intelligence on Russian troop positions. Two Omicron subvariants may be driving rising cases in New York State. The Centers for Disease Control and Prevention extended the federal mask mandate on planes and other forms of transit for two weeks. The Mortgage Note Reports Loan Apps Fall: Mortgage loan application volume fell another 1.3% last week as rates hit 5.13%, their highest level since November 2018. PCR Model: Commercial price growth may continue rising as property values may not yet have reached their cyclical peak, according to First American’s PCR Model. Opinion: Kevin B. Kimble, founder and CEO…
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 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…
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 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…
Good Morning! Today is Wednesday, April 6. U.S. stock indexes dropped Tuesday over worries about the Federal Reserve’s plans to curb inflation. The European Commission proposed to ban Russian coal. Oklahoma lawmakers approved a near-total ban on abortion. The Mortgage Note Reports U.S. Mortgage Markets Heat Up As Interest Rates and Prices Rise: Writer Scott Kimbler reports that potential homebuyers are rushing to mortgage offices to make sure they get a loan before prices and interest rates go even higher. Funding Available To Combat COVID-19 Housing Discrimination: U.S. Department of Housing and Urban Development officials are making an additional $3,285,353 in American Rescue Plan funding available to help fight housing discrimination related to the COVID-19 pandemic. Loan Applications Sink Further: …
Mortgage loan application volume fell by 6.3% to its lowest level since the spring of 2019, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 6.3%. The adjusted purchase index fell by 3%, while the unadjusted purchase index fell by 3% and was 9% lower YOY. The refinance index fell 10% and was down 62% YOY. Refinances made up just 38.8% of total applications, down from 40.6%. Mortgage rates hit 4.90% in their fourth straight week of increases, putting further pressure on dwindling refinances. Rates are now up 1.5 percentage points from the same time last year. “The hot job market and rapid wage growth continue to…
Forbearances rose slightly again as late-month new plans and restarts offset early-month exits, according to Black Knight’s blog, Vision. Overall, forbearances rose by 3,700. Forborne loans held by portfolios and PSLs increased by 5,300 (2.1%). FHA/VA loans remained unchanged, while GSE plans fell by 1,800 (0.8%). New plan starts dropped to 10,100, the lowest level in four months. Restarts fell by 11,500 to 20,200. Plan volume is down 40,000 (-5.1%) month-over-month. Forbearance volumes have ticked up some after long periods of decline, but are generally improving as the country recovers from the pandemic. The number of homeowners with existing loan workouts who were current on their payments rose in February for the first time since June 2021. “We can credit…
