Mortgage loan application volume fell 7.2% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. The seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, fell 7.2%. The seasonally adjusted purchase index rose 5%, while the unadjusted purchase index dropped 30% and was 8% lower YOY. The share of refinance applications dropped 15% and was 41% lower YOY. Refinances made up 59.4% of total applications, down from 63.1% the previous week. The report noted that mortgage rates– which rose to their highest point since April, hitting 3.31%– contributed to the significant decline in refinance applications. “Over the past three weeks, rates are up 15 basis points and refinance activity has declined over 18 percent,” said Joel…
Both homeowners and lenders may be underestimating the rising cost of insurance following a growing number of natural disasters, according to a SitusAMC white paper titled “Weathering the Storm: Burgeoning Insurance Costs for Real Estate.” The paper found that natural disasters have impacted residential property nationwide, not just in areas with highly publicized disasters such as California and Florida. The states with the most natural disasters were Texas (where winter storms accounted for 40% in total insurance market losses in 2021), Virginia, and South Dakota. As the number of disasters rises and their severity intensifies, insurance companies will face more risk, leading to higher insurance premiums and reductions in coverage for property owners. “The growing number of climate events has…
By KIMBERLEY HAAS As the COVID-19 pandemic continues and workers reevaluate their commitment to metropolitan life, lenders in smaller cities stand to benefit from what is being termed the “Great Resignation.” It is estimated that about 4.4 million Americans quit their jobs in September after months of dramatic departure numbers, which means those employees are looking for and taking new jobs, often choosing to live in a different location if they have the option of working remotely. Since 87% of employees say they would like to work remotely at least one day a week, and one in three workers would not want to work for an employer that required them to be onsite full time, potential homebuyers are taking these…
Good Morning! Today is Tuesday, November 30. The W.H.O called the Omicron variant a “very high” risk to global health. Jack Dorsey stepped down as Twitter’s chief executive. Barbados swore in its first president, officially becoming a republic and cutting ties with England. And in mortgage and housing news… Your Company’s Favorite Charity Could Receive $1,000: Across the country this December, mortgage professionals will be stepping up to help people in need, support community charities, and generally help make the season a little brighter. The Mortgage Note wants to celebrate those efforts by highlighting them in an upcoming edition of this newsletter. One office’s favorite charity will receive a $1,000 donation from The Morgage Note! Details here. SFRhub Teams Up With…
Pending home sales rebounded in October after a September drop, though the year-over-year (YOY) numbers were mild, according to the National Association of Realtor’s (NAR) Pending Home Sales Index. The Index, which is based on contract signings, rose 7.5% to 125.2 in October. An index of 100 is equivalent to the level of contract activity in 2001. However, signings fell 1.4% YOY. “Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” said Lawrence Yun, NAR’s chief economist. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still…
SFRhub.com has signed a Memorandum of Understanding with Altisource, with the goal of creating an online marketplace for SFR and BFR properties. The collaboration is intended to give SFRhub.com, a real estate investment platform specializing in single-family residential (SFR) and Build-For-Rent (BFR) investment portfolios, a “one-stop” platform for investors to buy and sell homes. Altisource, a data and residential real estate services provider, will supply information and services to the platform. “SFRhub.com’s collaboration with Altisource will provide SFR/BFR investors with the first-to-market, ‘one-stop’ solution to expertly buy and sell homes in one of CRE’s most fast-paced and hottest asset investment segments,” said Jeff Cline, executive director and principal of SFRhub.com. “We believe this multi-platform collaboration is truly one of the…
Across the country this December, mortgage professionals will be stepping up to help people in need, support community charities, and generally help make the season a little brighter. The Mortgage Note wants to celebrate those efforts by highlighting them in an upcoming edition of our newsletter — and by doing our part to spread holiday cheer. We’ll pick one highlighted charity and make our own $1,000 donation to it. What do you need to do? Just write a brief description of the charitable activity you and/or your co-workers are doing this year—ringing the Salvation Army bell, collecting for Toys for Tots, working at a local food bank, etc.—and email it to: [email protected] Also, include a link to the website of the…
Good Morning! Today is Monday, November 29. The new Covid-19 variant, Omicron, may be more contagious among vaccinated people but less deadly overall. Japan, Israel, and Morocco have closed their borders to foreign travelers. Mark Esper is suing the DOD for not clearing his book manuscript for publication due to sections detailing his time working under Donald Trump. And in mortgage and housing news… Build Back Better’s Implications On Housing Prices: The House version of President Biden’s “Build Back Better” plan includes about $170 billion for affordable housing and people are asking what that means. CRA Changes: As the Fed weighs making the Community Reinvestment Act race-specific, what do the data say about CRA loans? Not much. Forbearance Starts Jump: …
The number of loans in forbearance remained basically the same leading up to Thanksgiving, making up 1.9% of all active mortgages, according to Black Knight’s blog, Vision. Black Knight characterized this week as “holding true to the established mid-month pattern,” referring to a months-long trend of forbearance slowdown in the middle of the month, with substantial pushes in the first and final weeks. The number of active forbearance plans rose by 1,000. FHA/VA loans dropped by 4,000 but this was offset by an increase of 5,000 among portfolio and PLS loans. GSE loans saw no change. “Both plan extensions and renewals remained steady, but low, in keeping with the typical mid-month lull,” the blog reads. But there was one surprising…
By SCOTT KIMBLER The House version of President Biden’s “Build Back Better” plan includes about $170 billion for affordable housing and people are asking what that means. Biden’s spending plan includes $65 billion to preserve and rebuild public housing and another $15 billion to help build or preserve more than 150,000 rental properties for lower-income families. It’s part of the administration’s goal to build or preserve 1 million affordable homes. The bill is almost certain to change drastically in the U.S. Senate. But if the housing policies remain unchanged, what would this spending splurge mean for the overall housing market, at a time when prices are high and supply is low? The Mortgage Note spoke with Tom Smith, Ph.D. of…
