U.S. mortgage rates took their biggest one-week drop in more than a year last week.
The Mortgage Bankers Association reported the contract rate on a 30-year fixed mortgage fell 25 basis points to 7.61%. That’s the lowest level since the end of September.
Market watchers point to the Federal Reserve’s decision last week to hold interest rates steady as one reason for the slide in mortgage rates, adding to hopes the housing sector will improve in the coming months.
The MBA also reported mortgage applications for home sales rose 3%. Mortgage brokers say it’s no surprise that with a tight market and plenty of frustrated would-be buyers, there was a surge in demand.
Refinancing activity ticked up as the refinance…
By PATRICK LAVERY
When the Federal Open Market Committee meets this week analysts will be looking for signs of what’s next and it may be anyone’s guess.
At the Mortgage Bankers Association’s annual convention and expo in Philadelphia this month, MBA Chief Economist Michael Fratantoni told attendees that they expect the Feds will maintain the federal funds rate target range and do not expect an increase from them again this year.
Fratantoni projected there will be at least two cuts in 2024, and possibly more in 2025. But then Patrick Harker, the president and CEO of the Federal Reserve Bank of Philadelphia, took the stage the next day and said rates may have to stay high in order for them…
By KIMBERLEY HAAS
Leaders at Fannie Mae and Freddie Mac say they are using artificial intelligence to improve operational efficiencies.
Fannie Mae CEO Priscilla Almodovar and Freddie Mac President Mike Hutchins talked about the benefits of using AI during an on-stage conversation last week at the Mortgage Bankers Association’s annual convention and expo in Philadelphia.
Moderator Mark Jones, president of Union Home Mortgage and 2024 MBA Chairman, asked how the government-sponsored enterprises are thinking about using AI and what opportunities could arise as a result.
Hutchins said they have embraced the use of AI for quite a while.
“It’s an important part of our operations and we’re probably at the forefront of embedding AI into our models and into our…
By KIMBERLEY HAAS
A new policy that allows lenders to count income from accessory dwelling units when underwriting a mortgage will help provide affordable homes for those who need them most, according to a top housing official.
Julia Gordon, who serves as the assistant secretary for housing and federal housing commissioner at the U.S. Department of Housing and Urban Development, spoke about the changes last week during her remarks at the Mortgage Bankers Association’s annual convention and expo in Philadelphia.
“We’re going to allow both existing rental income for ADUs, and prospective rental income, to be included in the underwriting process to allow more borrowers to purchase properties with ADUs, to rehab existing houses to add ADUs, and to construct…
By KIMBERLEY HAAS
The director of the Consumer Financial Protection Bureau says it’s time to take big bank bailouts off the table.
Rohit Chopra shared his candid opinions on the subject during the Mortgage Bankers Association’s annual convention and expo last week during an on-stage conversation with MBA President and CEO Bob Broeksmit.
Chopra said although the financial system is dependent on the banking system operating day-to-day without interruption, he doesn’t think the public should be on the hook for bailing banks out when they get into trouble.
“Banks, especially big banks, get a lot of benefits from the public. Big subsidies, direct and indirect, and I don’t think the public should be on the hook for bailing them out…
By KIMBERLEY HAAS
The president and CEO of the Federal Reserve Bank of Philadelphia knew he was facing a tough crowd when he took the stage during a Monday morning session at the Mortgage Bankers Association’s annual convention and expo.
“I stand here this morning fully aware of the mood in this room and I am also fully aware of the way the actions we on the FOMC have taken over the past 18 months in our efforts to tame inflation to get it back to a 2% annual target have, in their own way, contributed to the current mortgage climate,” Patrick Harker said.
Harker said he met with community members this summer to see firsthand the impacts that monetary…
By KIMBERLEY HAAS
The Mortgage Bankers Association’s chief economist and his team had some good news for those in attendance of their annual convention and expo on Sunday afternoon.
Total mortgage origination volume is expected to be $1.95 trillion in 2024, up from the $1.64 trillion projected for 2023.
At the same time, volume is predicted to increase 19% by loan count, with 5.2 million loans expected next year.
Michael Fratantoni, chief economist and senior vice president of research and industry technology, said members just have to make it through the winter.
“In terms of origination volume, we think 2023 is the low point,” Fratantoni said, adding that many lenders have had five or six quarters of production losses.
In…
By CHUCK GREEN
Mirror, mirror, on the wall, show us a reflection of who we are.
American homebuyers are getting older. The typical first-time homebuyer is now 36, while the repeat buyer’s age climbed to 59 last year.
So what about the mortgage professionals that cater to these consumers? Are they older, industry veterans, or are they young and eager businessmen and women inspired to get into their career paths by the pandemic housing boom?
Based on information from Zippia, a career planning site, the average mortgage broker is 44 years old, and 67.5% of brokers are male.
The average mortgage originator is also 44 years old. Zippia estimates that 56.2% are men.
Beth Rosenbaum, principal of WOSG, a mortgage…
Mortgage applications slipped again last week as rates neared 7%, with purchase apps falling to their lowest level since the beginning of June.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 3%, adding to last week’s 1.18% decline.
Adjusted purchase applications fell by 3%, while the unadjusted index dipped 3% from the week before and 26% lower YOY.
The average interest rate for 30-year fixed loans rose from 6.87% to 6.93%, pushing homeownership farther out of reach for many Americans.
“The decline in purchase activity was driven mainly by weaker conventional purchase application volume, as limited housing inventory and rates still close to 7% are…
After an uptick last week, mortgage applications sank again, falling to their lowest level in a month as rates surged.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – decreased by 4.4%, wiping out last week’s 3% gains.
Adjusted purchase applications fell by 5%, though the unadjusted index rose 6% from the week before and 22% lower YOY.
Refinances dropped, down 4% from the week prior. They remain 30% lower than the same time last year, comprising only 27.4% of total applications. In the past decade, refis averaged 58% of total activity.
The average interest rate for 30-year fixed loans rose from 6.75% to 6.85%. This is the…
