Mortgage loan application volume rose by 2% last week, the Mortgage Bankers Association’s (MBA) weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 2%. The adjusted purchase index increased by 5%, while the unadjusted purchase index was up by 5% and was 8% lower YOY. The refinance index fell 2% and was down 72% YOY. Refinances made up 32.4% of total applications, down from 33.9%. ARM activity accounted for 10.8% of total applications, up from 9.3%. “The increase in mortgage applications last week was driven by a strong gain in application activity for conventional and government purchase loans, even as mortgage rates rose to their highest level – 5.53%– since 2009. Despite…
By KIMBERLEY HAAS There are pockets of the country where more homes are being listed than there were before the housing market exploded in 2020 which is a good sign for buyers in those metro areas. According to an article by Margaret Heidenry for Realtor.com, metros that saw the most new homes hit the market include Riverside, CA (+23.3%), Austin, TX (+16.5%), and Sacramento, CA (+11.8%). Metros include the main city and surrounding suburbs, towns, and smaller urban communities, according to the article. Compass Agent Paul Reddam in Austin told Heidenry it is hard to nail down what is causing inventory to loosen, but this is typically the peak of their real estate cycle. The bad news is that the number of homes for sale…
By KIMBERLEY HAAS The Acting Comptroller of the Currency says there is a need to update the frameworks used to analyze bank merger applications. In a speech before the Brookings Institution on Monday, Michael Hsu discussed proposed mergers in the context of bank competition, financial stability, and facilitating the needs of communities. “Bank mergers have received significant attention this past year. Concerns about the negative effects of bank mergers on competition, communities, and financial stability have prompted some to call for a moratorium on merger activity,” Hsu said. “In response, others have defended the benefits of mergers. They note that the U.S. financial services market is highly competitive, and mergers allow institutions to achieve needed economies of scale and to…
Good Morning! Today is Monday, May 9. Today is Victory Day, a holiday in Russia that has become a celebration of military might. Jill Biden made an unannounced visit to western Ukraine and met with the nation’s First Lady. A shortage of baby formula in the U.S. is causing some retailers to limit how much customers can buy. The Mortgage Note Reports Sentiment Down: Consumers across the country continue to report difficult homebuying conditions, Editor Kimberley Haas writes. OriginPoint Hire: John Stewart is joining OriginPoint as its new EVP of National Sales. Refi Closing Costs: The national average closing costs for a refinance in 2021 were up $88 from 2020 but were still less than 1% of the average refinance loan amount. And in other mortgage and housing news… NAR…
By KIMBERLEY HAAS Consumers across the country continue to report difficult homebuying conditions due to inflation, higher mortgage rates, and home price appreciation. Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, says that in April their Home Purchase Sentiment Index fell to its lowest level since the spring of 2020. The percentage of respondents who said it is a good time to buy a home decreased from 24% to 19%, while the percentage who said it is a bad time to buy increased from 73% to 76%. As a result, the net share of those who say it is a good time to buy decreased 8 percentage points month over month, according to the survey. “The current lack…
The national average closing costs in 2021 for a single-family property refinance were up $88 YOY, but still less than 1% of the average refi loan amount, according to CoreLogic’s annual Refinance Closing Cost Report. The average closing cost was $2,375, up 3.8% from 2020’s $2,287. The average refi loan amount was $304,909. By contrast, the national average for purchase closing costs was $3,860. The main difference in closing costs between the two are owner title insurance and inspection fees common for purchase transactions, but less often required for refis. Most third-party fees were still lower for refis. “In 2021, homeowners were still able to get good deals on both interest rates and closing costs,” said Bob Jennings, executive, CoreLogic…
John Stewart is joining OriginPoint as its new EVP of National Sales, the company announced in a press release. “When the opportunity to work at OriginPoint presented itself, I couldn’t pass up the chance to join the team,” said Stewart. “OriginPoint has a great value proposition for consumers and loan officers, which allows us to better serve homebuyers and deliver a hassle-free mortgage process.” OriginPoint is a digital origination venture between Compass and Guaranteed. In his new position, Stewart will oversee OriginPoint’s sales and recruiting operations. Stewart brings more than 30 years of mortgage and finance industry to the role. Prior to this, Stewart served as a Division Manager at Guaranteed Rate. He is also the President and Co-Founder of…
Good Morning! Today is Friday, May 6. The U.S. provided intelligence that helped Ukraine sink the flagship of Russia’s Black Sea fleet. The FDA further limited the use of Johnson & Johnson’s vaccine. Karine Jean-Pierre will become the first Black woman and first openly gay person to serve as White House press secretary. The Mortgage Note Reports Rates Back Up: Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week. Asking Prices: In April, 15% of home sellers dropped their asking prices, a 5.9% YOY increase that coincides with monthly mortgage payments rising 42% YOY. In Case You Missed It: This week, Editor Kimberley Haas reported that the CEO of United Wholesale Mortgage has come under fire after posting online that he is “disappointed” with…
As affordability declines, the hot housing market is starting to see signs of cooling. In April, 15% of home sellers dropped their asking prices, a 5.9% YOY increase, Redfin reported. The increase is a six-month-high and the largest annual gain on Redfin’s record, which dates back to 2015. But buyers still outnumber sellers, so the market remains competitive and homes priced affordably continue to sell for more than asking. New listings of homes for sale were down 6% YOY and have dwindled since mid-March. The median asking price of newly listed homes rose 16% YOY to $408,458, a new all-time high. So even as more sellers are dropping prices to entice buyers, their returns are still significant. “Homebuyers continue to…
Mortgage rates shot back up after a one-week reversal of their upward trend, averaging 5.29% last week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.29%, up from 5% last week. A year ago at this time, the 30-year FRM averaged 2.96%. “Mortgage rates resumed their climb this week as the 30-year fixed reached its highest point since 2009,” said Sam Khater, Freddie Mac’s Chief Economist. “While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months.” Affordability dropped in Q1 2022, with monthly mortgage payments on the typical home rising to $1,383 (+30% YOY). Homeowners…
