Forbearances fell to just 2.89% of servicers’ portfolio volume last week, down from 2.96% the week before, according to the Mortgage Bankers Association’s (MBA) latest survey. It’s just the second time they’ve fallen below 3% since March 2020. The estimated number of homeowners in forbearance plans is around 1.4 million. The decline is part of a trend that’s continued even as government-funded forbearance relief plans have expired. For Fannie Mae and Freddie Mac loans, forbearances were down six basis points to 1.38%. Ginnie Mae loans fell seven basis points to 3.35%. Portfolio loans and private-label securities shares fell fourteen basis points, from 6.91% to 6.77%. Independent mortgage bank servicers saw a drop of five basis points to 3.19%, and the…
Outstanding commercial and multifamily mortgage debt rose 1.5% in Q2 2021, an additional $60.7 billion, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Multifamily mortgage debt specifically increased $23.8 billion, or 1.4%, to $1.7 trillion from Q1. Total commercial and multifamily debt rose to $3.98 trillion. “Strong demand from all of the major capital sources led to another increase in the amount of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “In line with the strength of apartment fundamentals and values, there was a solid increase in the amount of multifamily mortgage debt outstanding. Additionally, the increase in mortgage debt on other, non-multifamily commercial properties…
More than half of respondents to a Realtor.com survey said they considered natural disasters when deciding where to live. Millennials and Gen Z were particularly wary of potential disasters when choosing a home. Disaster fears have grown over the last five years, with 47% of homeowners becoming more concerned over time. Of current homeowners, 62% expressed fears about the threat of natural disasters to their homes. The most concerned demographics were recent buyers, Millennials, Gen X, and urban homeowners. These groups also reported the most growth in their fears over the last five years. Baby Boomers, the Silent Generation, and rural homeowners weren’t as worried overall; half said they weren’t concerned at all. More than half of Millennial and Gen…
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…
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…
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 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.…
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…
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…
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…
