Purchase Apps, Refis See Boost As Rates Retreat

Both purchase applications and refis saw increases as rates fell for a fifth consecutive week. The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%. Adjusted purchase applications increased by 3%, while the unadjusted index was up 4% from the week before and was 37% lower YOY. Refinances saw a big upswing, rising 18% from the week prior. But they remain 75% lower than the same time last year, comprising only 33.9% of total applications. In the past decade, refis averaged 58% of total activity. “Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of…

Loan Apps Rise Again, Buoyed By Refis

Mortgage loan application volume increased again last week, continuing a trend of rising demand as mortgage rates slip. The Mortgage Bankers Association’s weekly survey showed the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 7%. The results included an adjustment for Martin Luther King, Jr. Day. Refinances drove the increase, up 15% from the week prior as mortgage rates fell to 6.2%, their lowest level since September. They remain 77% lower than the same time last year, however, comprising only 31.9% of total applications. In the past decade, refis averaged 58% of total activity. Purchase demand saw a boost as well, though not as drastic. Applications increased at a seasonally adjusted rate of 3%, but…

Monetary Policy: How Will The Fed’s Rate Hike Affect Home Affordability?

By KIMBERLEY HAAS With the Federal Reserve raising interest rates seven times this year – and with more rate hikes on the way in 2023 – people are wondering if their policies to cool inflation are unfairly punishing those in the housing market. The Fed’s policy-setting committee raised its benchmark rate a half-point to 4.5% this week. The goal is to reach 2% inflation by controlling monetary policy. The chair of the Federal Reserve opened his press conference on Wednesday saying that he would like to underscore for the American people that they understand the hardship that high inflation is causing. Jerome Powell said the U.S. economy has slowed significantly from last year’s rapid pace. “Recent indicators point to modest…

Leaders: There Are Still Potential Buyers Despite The Odds

By CHUCK GREEN Despite a plethora of obstacles, there are prospective buyers chomping at the bit to purchase a home, according to experts. On Wednesday, Zillow Home Loans Senior Economist Matthew Speakman released a statement on mortgage rates dropping after a report on inflation showed that price pressures may finally be easing. “The arrival of weaker-than-expected October Consumer Price Index data was just the sign investors had been waiting for, and markets viewed it as a signal that the Federal Reserve may finally take its foot off the brakes as it determines the path forward for monetary policy,” Speakman said. “Bond yields tumbled as a result and mortgage rates – which had spent the last few weeks oscillating at or…

Kristy Fercho Named Head Of Wells Fargo’s DSRI

Kristy Fercho has been named Well Fargo’s new head of Diverse Segments, Representation, and Inclusion, the bank announced in a press release. She is succeeding Kleber Santos, who is transitioning to CEO of the bank’s Consumer Lending Business. Fercho is being promoted from her position as head of Wells Fargo Home Lending. In her new position, she will integrate diversity, equity, and inclusion into the various aspects of Well Fargo’s business, and deliver marketplace and workplace outcomes. “Our work on diversity, equity, and inclusion is a long-term commitment, and we will continue to advance it under Kristy’s leadership,” said Wells Fargo CEO Charlie Scharf.  “Her deep business experience, including her most recent role as head of our Home Lending business,…

MBA Announces Round Of Promotions

Leaders at the Mortgage Bankers Association have announced a series of high-level promotions. Justin Wiseman has been promoted to Vice President, Managing Regulatory Counsel. Heather Messam has been promoted to Vice President and Controller. Finally, Joel Kan has been promoted to Vice President, Deputy Chief Economist.  Wiseman first joined MBA in 2012 and has held positions including Associate Regulatory Counsel and Director of Loan Administration Policy. He was promoted to Associate VP, Managing Regulatory Counsel in 2017. “Justin has been a tremendous asset to MBA and an invaluable resource to our members, providing strategic direction and strong legal intellect on a plethora of regulatory compliance and policy issues during his decade-plus tenure,” said Pete Mills, MBA’s Senior Vice President of…

Loan Apps Continue Downward Spiral

Mortgage loan application volume fell another 2% last week, according to the Mortgage Bankers Association’s weekly survey. Interest rates rose to 6.81%, their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 2%. The adjusted purchase index fell 2%, while the unadjusted purchase index decreased 2% and was 39% lower YOY. The refinance index dropped by 2% and was 86% lower than the same time last year. Refis made up 29% of total applications. The ARM share of activity dipped slightly from last week as the 5/1 interest rate jumped 20 basis points from 5.36% to 5.56%. “The ARM share of applications remained quite high at 11.7%– just below last week’s…

Loan Volume Up As Rates Rise To 6.25%

Mortgage loan application volume increased by 3.8% last week, breaking a multi-week pattern of steep declines, despite rates rising to their highest point since October 2008. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 3.8%. The results include an adjustment for Labor Day. The adjusted purchase index rose 1%, while the unadjusted purchase index increased 11% and was 30% lower YOY. The refinance index rosed by 10% and was 83% lower than the same time last year. Refis made up 32.5% of total applications. “Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they…

Affordability Improved In July

Affordability improved in July, with the national median payment applied for by applicants falling to $1,844 from $1,893 in June, the Mortgage Bankers Association (MBA) reported. MBA’s Purchase Applications Payment Index (PAPI) fell for a second consecutive month, down 3.8% to a reading of 157.7.  PAPI measures monthly payments across time and relative to income, so this reading indicates that payments on new mortgages accounted for a smaller share of a typical person’s income. The improvement can be attributed to lower mortgage rates and less competition as more potential buyers are priced out of the market. Rates dipped to 5.13% last week, though they are back up this week. Additionally, purchase demand has declined sharply this year. Overall loan application…

Affordability Improved Slightly In June

The national median payment applied for by mortgage applicants dropped slightly in June, down to $1,893 from May’s $1,897, the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI) found. PAPI measures the variations in new monthly mortgage payments across time and relative to income. The national PAPI fell 0.2% to a read of 163.9 in June, indicating that new mortgages account for a smaller share of a typical person’s income. A decrease in PAPI shows affordability improving for borrowers due to loan application amounts or mortgage rates falling, or earnings rising. But affordability remains high compared to the same time last year, with the index up 37.4% YOY. “Median mortgage applications payments have held steady during the last two…