The median net worth of American households rose 17.6% between 2016 and 2019, according to a new report from the Mortgage Bankers Association’s (MBA) Research Institute for Housing America (RIHA). The report, titled The Distribution of Wealth in America Since 2016, found that median net worth increased from $103,000 in 2016 to $127,000 in 2019, the highest amount since 2007. “The increase in homeownership, and the steady rise in home values and the stock market drove the increase in middle-class wealth. The median net worth of every racial and ethnic category also increased, with the largest increases coming from Black and Hispanic households,” said Dr. John C. Weicher, author of the report and Director for the Center for Housing and…
Ronald McCord, former Mortgage Bankers Association (MBA) president and founder of Oklahoma City-based First Mortgage Company (FMC), pleaded guilty to a slew of charges including defrauding Fannie Mae. McCord, 71, was indicted by a grand jury in June 2020, with charges including bank fraud, money laundering, and making false claims to a financial institution. McCord pleaded guilty to five of the twenty-four charges. McCord served as MBA president in 1997, at which time the position was a volunteer role. In the plea hearing, McCord admitted to defrauding Spirit Bank, Citizens State Bank, and their respective residential mortgage subsidiaries. An independent audit showed McCord had sold more than $14 million in loans “out of trust,” failing to repay when certain loans…
Mortgage loan application volume fell 7.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, fell 7.2%. The seasonally adjusted purchase index rose 5%, while the unadjusted purchase index dropped 30% and was 8% lower YOY. The share of refinance applications dropped 15% and was 41% lower YOY. Refinances made up 59.4% of total applications, down from 63.1% the previous week. The report noted that mortgage rates– which rose to their highest point since April, hitting 3.31%– contributed to the significant decline in refinance applications. “Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18 percent,” said Joel…
Mortgage loan application volume rose 1.8% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, increased 1.8%. The seasonally adjusted purchase index rose 5%, while the unadjusted purchase index dropped 0.4% and was 4% lower YOY. The report noted that though rates were volatile last week, the net trend is upward, with the 30-year fixed rate rising to 3.24%. “Despite the increase in rates, refinance applications rose slightly, driven by a 2% gain in conventional refinances. Borrowers continue to lock in mortgages in anticipation of higher rates in the future. Refinance applications were still more than 30% below a year ago when the 30-year fixed rate…
The national delinquency rate continued to improve at a slow but steady pace last month, with especially impactful declines for loans overdue by 30 days or more, according to Black Knight’s October 2021 “first look” report. Delinquencies dropped another 4.25% at the end of October to 3.74%. The decline was pushed by significant changes in longer delinquencies. Loans 30 or more days past due dropped by 82,000, bringing their total below 2 million for the first time since the beginning of the pandemic. Serious delinquencies also saw huge drops, declining by 10%, or 127,000 loans. Black Knight attributes that dip to the first wave of homeowners in forbearance beginning to make payments again. The report predicts more improvement in this…
After weeks of waiting, President Biden announced Monday he is renominating Federal Reserve Chairman Jerome H. Powell to another four-year term. Now analysts are asking what impact another Powell term will mean to mortgage rates and the housing market. The move has been characterized as a return to the status quo in which the Fed chairman is reappointed regardless of their political identity, a tradition former President Trump bucked when he appointed Powell. The Fed chairman question has been on many industry watchers’ minds in the last two weeks. Much was made of Biden’s sit down with Fed Governor Lael Brainard, seen as the most likely candidate if Biden chose to make a change. Brainard has instead been nominated as…
Mortgage rates rose again after several weeks of small declines, reaching 3.10%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.10%, up from last week’s 2.98%. A year ago at this time, the 30-year FRM averaged 2.72% “The combination of rising inflation and consumer spending is driving mortgage rates higher,” said Sam Khater, Freddie Mac’s Chief Economist. “Shoppers looking to buy a home are fueling strong demand while ongoing inventory shortages are not improving in the presence of higher home prices. This reality illustrates the challenging situation facing the housing market.” Though the holidays are usually a slow period in the industry, homebuyer demand has remained high. Redfin’s latest Homebuyer Demand…
Mortgage loan application volume fell 2.8% last week, driven again by low refinance applications, the Mortgage Bankers Association’s (MBA) weekly survey reported. The Market Composite Index, which measures application volume, fell 2.8% on an adjusted basis. The Refinance Index dropped 5% and was 31% lower than a year ago, rebounding from last week’s drop to its lowest level since July 2021. The seasonally adjusted Purchase Index rose 2%, while the unadjusted Purchase Index fell 2% compared to the week before, down 6% from the previous year. “Refinance applications decreased for the seventh time in eight weeks, as mortgage rates moved higher after two weeks of declines,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. But the…
Mortgage applications for new home purchases fell 15.2% year-over-year (YOY) in October but increased 6% month-over-month (MOM), according to the Mortgage Bankers Association’s (MBA) latest Builder Application Survey. The increase from September puts MBA’s estimate of new home sales at its strongest pace since January 2021. “Purchase activity continues to be dominated by higher loan balance transactions, which pushed the average new home loan size up to over $412,000, another new record in the survey,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes. Housing demand remains strong,…
Delinquencies dropped for mortgages on one-to-four-unit residential properties in Q3 2021, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The seasonally adjusted rate fell to 4.88% of all outstanding loans, down 59 basis points for Q2 and 277 basis points year-over-year (YOY). The survey asked servicers to report loans in forbearance as delinquent if the payment was not made based on the original terms of the mortgage. “For the fifth consecutive quarter, the mortgage delinquency rate declined, commensurate with a decline in the U.S. unemployment rate over the same time period,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “The improvement was driven entirely by a decline in later-stage delinquent loans – those loans that are…
