Mortgage rates rose to 3.01% over the past week, Freddie Mac reported Thursday. Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent. “Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” said Sam Khater, Freddie Mac’s Chief Economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.” On Tuesday, both Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before Congress…
The Association of Independent Mortgage Experts (AIME) hosted its 4th annual Fuse National Conference, a conference for brokers and wholesale mortgage professionals. It is the largest nationwide gathering of independent mortgage professionals in the industry. The conference spanned three days, with a pre-event dedicated to empowering women leaders as part of AIME’s Women’s Mortgage Network Summit. The Women’s Mortgage Network Facebook group saw a 100% increase in membership since September 2020, so it’s not a surprise the event sold out its 400 tickets. AIME CEO Katie Sweeney gave the trade association’s keynote, during which she announced a new AIME Member Portal (AMP), along with associated membership tiers with benefits for members. The lower tiers give members access to AIME’s Facebook…
Outstanding commercial and multifamily mortgage debt rose 1.5% in Q2 2021, an additional $60.7 billion, according to the Mortgage Bankers Association’s (MBA) latest Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Multifamily mortgage debt specifically increased $23.8 billion, or 1.4%, to $1.7 trillion from Q1. Total commercial and multifamily debt rose to $3.98 trillion. “Strong demand from all of the major capital sources led to another increase in the amount of commercial and multifamily mortgage debt outstanding,” said Jamie Woodwell, MBA’s Vice President of Commercial Real Estate Research. “In line with the strength of apartment fundamentals and values, there was a solid increase in the amount of multifamily mortgage debt outstanding. Additionally, the increase in mortgage debt on other, non-multifamily commercial properties…
Good Morning! Today is Wednesday, September 29. Consumer confidence dipped in September, as President Biden’s poll numbers on the economy continue to slip. A Wall Street Journal investigation found that 130 federal judges broke the law by overseeing cases involving companies in which they or their families owned stock. The FTC is considering bypassing Congress to strengthen online privacy protections. And in mortgage and housing news… Loan Applications Fall: Mortgage loan application volume fell 1.1% last week, MBA’s weekly survey reports. Commercial/Multifamily Debt Up: The level of outstanding commercial/multifamily mortgage debt rose by $60.7 billion in Q2 2021, according to the MBA’s Commercial/Multifamily Mortgage Debt Outstanding quarterly report. Yellen, Powell See Inflation Ahead: In testimony before the Senate Banking Committee, America’s top two financial regulators said inflation…
Two of the Biden administration’s top finance officials are warning that inflation is on the rise and is likely to linger, which could have an impact on the cost of both houses and the mortgages needed to buy them. During testimony before the Senate Banking Committee, Treasury Secretary Janet Yellen acknowledged that inflation is rising twice as fast as the 2% she had predicted. “Probably closer to 4% and that already almost must be the case based on what’s happened this year,” she told Sen. John Kennedy (R-La.) “Inflation is elevated and will likely remain so in coming months before moderating,” Fed Chairman Jerome Powell said in his opening statement. When asked if the inflation problem is more significant than…
Mortgage loan application volume fell 1.1% last week, the Mortgage Bankers Association’s (MBA) weekly survey reports. Interest rate spikes stopped the upward momentum of applications seen in last week’s survey. The Market Composite Index, which measures application volume, fell 1.1% on an adjusted basis. On the same basis, they fell 1% from the week before, which is 13% lower year over year. The share of refinancing applications fell 1% and was 0.4% higher compared to a year ago. The seasonally adjusted Purchase Index fell 1%, while the unadjusted Purchase Index fell 2% compared to the week before, down 12% from the previous year. “Increased optimism about the strength of the economy pushed Treasury yields higher following last week’s FOMC meeting.…
Americans’ average credit score rose seven points from 2020 to Q2 2021, reaching 695, the highest average in more than 13 years, according to Experian’s State of Credit report. “The findings from this year’s report show something I’ve always believed: Americans are resilient, for the most part they make smart decisions in the face of adversity and they are agile in adjusting their financial habits when the environment or circumstances change,” said Alex Lintner, President, Experian Consumer Information Services. Consumers across all generations except Gen Z lowered their credit card balances and utilization rates. They also missed fewer payments. Minnesota held the highest average score, 726, while Mississippi held the lowest, 666. New Jersey had the highest number of credit…
Good Morning! Today is Tuesday, September 28. Rocket Mortgage will continue to sponsor the PGA’s Rocket Mortgage Classic through 2027. The presidents of Boston and Dallas’s Federal Reserve banks are resigning following reports of investment trading. Federal Reserve Chairman Jerome Powell will tell Congress today that inflation will stay high for a few months before moderating. Senate Republicans blocked a bill that would prevent a government shutdown. And in mortgage and housing news… Forbearances Keep Falling: The share of loans in forbearance fell yet again, dropping to 2.96%. It’s the first time they’ve dipped below 3% since March 2020. Natural Disasters Cause Concern: More than half of respondents to a Realtor.com survey said they considered natural disasters when choosing where…
Forbearances fell again last week, continuing to trend down as relief plans expire, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up just 2.96% of servicers’ portfolio volume, down from 3.00%. It’s the first time they’ve fallen below 3% since March 2020. The estimated number of homeowners in forbearance plans is around 1.5 million. For Fannie Mae and Freddie Mac loans, the August 2021 number was down three basis points to 1.44%. Ginnie Mae loans rose three basis points to 3.42%. Portfolio loans and private-label securities shares fell four basis points, from 6.95% to 6.91%. Independent mortgage bank servicers saw a drop of one basis point to 3.24%, and the share for depository servicers declined four points…
Good Morning! Today is Monday, September 27. Government funding is set to expire this week as Democrats push two sweeping legislative packages. States are beginning to roll out booster shots to at-risk Americans. China traded two detained Canadian citizens to bring home a Huawei executive accused of stealing trade secrets. And in mortgage and housing news… What Does Debt-Limit Mean For Mortgage Rates?: Mortgage rates could be impacted by Washington D.C.’s debate over raising the debt ceiling. “LIFT”: Legislation aimed at first-time homebuyers proposes creating a 20-year-fixed-rate mortgage program through Ginnie Mae. FHFA Loan Mods:Fannie Mae and Freddie Mac completed 217,020 foreclosure prevention actions in the second quarter, with 47% of loan modifications lowering monthly payments by more than 20%.…
