Good Morning! Today is Thursday, January 27. Supreme Court Justice Stephen Breyer is retiring. Neil Young is removing his music from Spotify, saying it has become “the home of life-threatening Covid misinformation.” The U.S. rejected Russia’s demands that NATO retreat from Eastern Europe and bar Ukraine from ever joining, but offered other areas of negotiation. The Mortgage Note Reports Rate Increases Into 2023: At least one economist says the Federal Reserve is already behind the inflation curve, and the mortgage industry should expect interest rate increases into 2023. Down, Up, Then Back Down: Mortgage loan application volume fell 7.1% from last week, with refis tumbling 13%, MBA reported. “Appropriate Pricing Policies”: CHLA sent a letter to FHFA Acting Director Sandra…
At least one economist says the Federal Reserve is already behind the inflation curve, and the mortgage industry should expect interest rate increases into 2023. “Short-term interest rates will be pushed up by the Federal Reserve [in 2022], as the Fed announced,” writes Dr. Bill Conerly in Forbes. “They will raise rates in quarter-point increments three or four times this year. They will still be behind the curve, most likely, and will raise short rates more aggressively in 2023.” Predicting future Fed moves isn’t easy — not even for the Fed itself. Last summer, the Federal Reserve said it wouldn’t raise rates at all until 2023. That proved to be untrue. In a video news conference after their two-day meeting…
Mortgage loan application volume fell 7.1% from last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased 7.1%. The adjusted purchase index fell 2%, while the unadjusted purchase index fell 5% and was 11% lower YOY. The refinance index fell 13% and was down 53% YOY. Refinances made up 55.8% of total applications. Mortgage rates continue to climb, with the 30-year fixed-rate reaching its highest level since March 2020 last week, 77 basis points above the same time last year. “Unsurprisingly, borrower demand for refinances subsided, with applications falling for the fourth straight week. After almost two years of lower rates, there are not many borrowers left…
Good Morning! Today is Thursday, January 20. President Biden suggested he would break up his climate and social spending bill to improve the chances of passage. Senate Democrats failed to alter the filibuster to pass voting legislation, with Joe Manchin and Kyrsten Sinema voting with Republicans. Starbucks rescinded its vaccination requirement after the Supreme Court struck down Biden’s mandate. And in mortgage and housing news… Loan Applications Surge: Mortgage loan application volume rose 2.3% from last week, MBA’s weekly survey reported. Acceleration In Full Swing: Monthly home value appreciation accelerated for the first time since July as potential buyers continue to outnumber new listings, driving December inventory to an all-time low. New Home Purchase Apps Down: Mortgage applications for new…
Mortgage loan application volume rose 2.3% from last week, the Mortgage Bankers Association’s (MBA) weekly survey reported. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased 2.3%. The adjusted purchase index rose 8%, while the unadjusted purchase index rose 14% and was 13% lower YOY. The refinance index fell 3% and was down 49% YOY. Refinances made up 60.3% of total applications. “Mortgage rates hit their highest levels since March 2020, leading to the slowest pace of refinance activity in over two years. The 30-year fixed rate reached 3.64% and has increased more than 30 basis points over the past two weeks. FHA and VA refinance declines drove most of the refinance slowdown,” said Joel Kan,…
Good Morning! Today is Wednesday, January 19. Microsoft is buying Activision Blizzard in a $75 billion deal. Gilead Sciences is accusing suppliers and distributors of selling fake versions of its HIV medications. The House committee investigating the Jan. 6 riot issued subpoenas to Rudy Giuliani and three other Trump allies involved in efforts to overturn the 2020 election results. And in mortgage and housing news… Finding A Place For Fido: As pet owners think about what their next move will be if they have to sell their homes due to the economic backlash of the pandemic, some organizations are advocating for increasing options for renters with dogs and cats. Forbearances Down: The total number of loans now in forbearance fell…
The total number of loans in forbearance fell from 1.67% of servicers’ portfolio volume to 1.41% in December 2021, according to the Mortgage Bankers Association’s (MBA) Loan Monitoring Survey. The pace of monthly forbearance exits is at its lowest point since MBA began tracking exits in June 2020. MBA estimates 705,000 homeowners are currently in forbearance plans. Independent mortgage banks saw a 0.28% decline from 1.94% to 1.66%, while depositories saw a 0.28% drop from 1.52% to 1.24%. The share of forborne Fannie and Freddie loans fell to 0.68%, down by 8 basis points, while Ginnie Mae loans fell from 2.10% to 1.63%, down 47 basis points. PLS and portfolio loans in forbearance dropped by 51 basis points to 3.43%.…
Good Morning! Today is Monday, January 17. It’s Martin Luther King Day, and markets are closed. Martin Luther King Jr.’s family will lead a march for voting rights today in DC as congressional Democrats vow to press ahead with legislation. The public can begin ordering free at-home rapid Covid-19 tests through a new government website on Wednesday. Four hostages at a Texas synagogue were freed on Saturday, and their captor killed. And in mortgage and housing news… No Longer A Nightmare on Elm Street: The house made famous by the 1984 horror movie “A Nightmare on Elm Street” has sold for nearly $3 million in Los Angeles after being on the market for less than three months. C&M Delinquencies Fall:…
Good Morning! Today is Thursday, January 13. Donald Trump endorsed booster shots and said politicians who hid their vaccination status were “gutless.” Kevin McCarthy, the top House Republican, said he would not cooperate with the House committee investigating the Capitol riot. More than 8,000 unionized employees at Kroger’s King Soopers stores in Denver went on strike on Wednesday. And in mortgage and housing news… Mortgage Applications Up: Mortgage loan application volume rose 1.4% from last week, though refis once again fell, MBA reported. All-Time Low: ATTOM’s Year-End Foreclosure Market Report found foreclosure filings dropped to an all-time low in 2021, down 95% from a peak of nearly 2.9 million in 2010. Forty-Year High: The BLS’s Consumer Price Index reported that…
Mortgage loan application volume rose 1.4% from last week, though refinances once again fell, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, a measure of mortgage loan application volume, increased 1.4%. The seasonally adjusted purchase index rose 2%, while the unadjusted purchase index rose 51% and was 17% lower YOY. The refinance index fell 0,1% and was down 50% YOY. Refinances made up 64.1% of total applications, their lowest level in more than a month. Conventional refi applications are at their lowest level since January 2020. The survey attributed the drop in refinances to increasing interest rates. The 30-year fixed rate reached 3.52%, its highest level since March 2020, and the Fed signaled this week that…
