Rates Shrink Slightly

Mortgage rates shrunk slightly last week, giving borrowers a little breathing room as they inch towards 7%, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey found that the 30-year fixed-rate mortgage averaged 6.66%, down from 6.70% just last week. A year ago at this time, the 30-year FRM averaged 2.99%. “Mortgage rates decreased slightly this week due to ongoing economic uncertainty,” said Sam Khater, Freddie Mac’s Chief Economist.  “However, rates remain quite high compared to just one year ago, meaning housing continues to be more expensive for potential homebuyers.” Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as the looming 7% interest rate scared buyers off the market. A recent survey found that…

EVP: Rocket’s “Inflation Buster” Result Of Listening To Clients’ Needs

By KIMBERLEY HAAS As interest rates climb towards seven percent and loan applications fall to their slowest pace since 1997, leaders at Rocket Mortgage say they have a solution and it has a name: Inflation Buster. Rocket’s new Inflation Buster program was announced on Sept. 16. It gives homebuyers a reprieve by reducing their monthly mortgage payment by one percentage point for the first year of their loan, according to a press release. Bill Banfield, EVP of Capital Markets at Rocket Mortgage, sat down for an interview with The Mortgage Note to explain how the program is the result of leaders at the company listening to the needs of their clients. “You, me, everybody is talking about inflation. You can’t…

Record-High Down Payments See Moderation

Buyers are paying record-high down payments thanks to the combination of soaring prices and high competition, but they may see a reprieve soon, according to new data from Redfin. The typical U.S. mortgage borrower in July put down $62,500, up 13.6% YOY and nearly twice the growth in home sales prices. It’s also nearly double the median $32,917 down payment from July 2019, before the pandemic. Down payments have fallen slightly since peaking at $66,000 in May and June, due in part to the cooling market. Just under 59% of buyers who used a mortgage had a 10%-plus down payment, up from 57.5% a year ago but down from a peak of 60.5% in May. “Homebuyers don’t need to make…

Homeownership “Unattainable”: 1 In 4 Americans Putting Off Buying A Home Indefinitely

Housing affordability is a bigger deal to Americans than the possibility of a recession, according to a new survey by Personal Capital. The survey found that 1 in 4 people have decided to put off buying a home “indefinitely.” Rising mortgage interest rates were the number one concern of respondents, despite the fact that more than 75% said they expect a recession within two years. Gen Z was the generation most likely to say homebuying isn’t currently an option for them, and nearly a quarter called homeownership “unattainable.” Gen Zers overwhelmingly want to own their own homes, with 59% identifying homeownership as a sign of success. But many are worried they may never be able to afford a home if prices continue…

Brad Chmura Joins Anchor As CRO

Anchor Loans has hired Brad Chmura as Chief Revenue Officer, the company announced in a press release. Chmura will be responsible for revenue growth, company sales, loan fulfillment, and customer service, as well as boosting Anchor’s brand. The company specializes in large loans for experienced real estate investors. He has more than two decades of experience in business-to-business sales and operational leadership. Prior to joining Anchor, Chmura served as CEO at CoreVest Finance, a national lender for real estate investors. He has also served as Vice President of Sales at First American Mortgage Solutions and Director of Global Mortgage Sales for CoreLogic. “Brad is a highly accomplished, recognized leader in sales and operations, with a proven track record of driving…

Loan Apps Tumble By 14%

Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as rates hit 6.75%, according to the Mortgage Bankers Association’s weekly survey. Interest rates are now at their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 14.2%. The adjusted purchase index fell 13%, while the unadjusted purchase index decreased 13% and was 37% lower YOY. The refinance index dropped by 18% and was 86% lower than the same time last year. Refis made up 29% of total applications. “The current rate has more than doubled over the past year and has increased 130 basis points in the past seven weeks alone. The steep increase in rates…

This Spooky Weare, New Hampshire House Listing Is Getting National Attention

By KIMBERLEY HAAS Update: This home, without photos of the seller dressed as the fictional character Michael Myers from the “Halloween” series of slasher films, is now under contract. A New England couple’s house listing has gone viral because it features photos of the fictional character Michael Myers from the “Halloween” series of slasher films. A man is seen holding a knife on the property and inside the house, which is listed for $375,000. It is located at 73 Guys Lane in Weare, New Hampshire. Realtor Tommy Bolduc of Keller Williams Realty-Metropolitan said on Tuesday morning that the two-bedroom, two-bathroom house has been popular online since it hit the market on Sept. 30. “Anybody who is looking for a house in…

Jerry Halbrook Joins Pennymac

Pennymac has appointed fintech exec Jerry Halbrook as its Chief Mortgage Innovation Officer, the company announced in a press release. Halbrook brings four decades of experience to the company. He will be responsible for developing and launching new tech solutions and preparing for future innovations. “Pennymac welcomes Jerry and his extensive expertise as we continue to make significant strides towards building the future of technology in the mortgage banking industry,” said Doug Jones, President and Chief Mortgage Banking Officer at Pennymac.  “Jerry is a proven leader who will accelerate Pennymac’s growth in sectors where our industry is moving – especially in today’s competitive and volatile market.” His previous experience includes roles in the top 10 mortgage lenders, plus boutique firms…

Gig Workers Have More Borrowing Options Thanks To Loosening GSE Standards

Loosening lending standards are making it easier than ever for gig workers to finance homes. These workers often make enough money to qualify for a loan, but often have a difficult time proving that to lenders. “It is a phenomenon with this gig economy where people can drop in and have an Amazon play, and they’re pulling in $10,000 a month from it. So, these are not traditional type borrowers,” Eric Morgenson, VP of business development at Angel Oak, said on a panel discussing loans for gig workers. Self-employed borrowers are typically asked for contract work 1099s, copies of the last 12 to 24 months of business and personal bank statements, and year-to-date profit-and-loss statements that report revenue, expenses, and…

Home Prices See Largest Monthly Drop Since 2009

Home prices fell for a second consecutive month in August, with prices seeing the sharpest contractions in more than 13 years. Black Knight’s latest Mortgage Monitor Report showed huge price drops month-over-month and stalling inventory levels. Its Home Price Index saw prices decline 0.98%, with the median home price now 2% off its June peak. July’s 10.5% dip and August’s 0.98% are the largest one-month price drops since the Great Recession and are in the top eight largest dips ever recorded. “Either one of them would have been the largest single-month price decline since January 2009 – together they represent two straight months of significant pullbacks after more than two years of record-breaking growth,” Black Knight Data & Analytics President…