Good Morning! Today is Thursday, Aug. 26. Reports of a looming terror attack at the airport in Kabul has added new chaos to U.S. evacuation efforts. House Democrats are putting together a sprawling, $3.5 trillion spending bill that targets climate change, poverty, college financial aid and Medicare. Delta Airlines is charging unvaccinated employees $200 more on their health plans. A federal judge in Michigan sanctioned pro-Trump lawyers who sued officials over alleged voter fraud. And in mortgage and housing news… Mortgage Rates Hold Steady: Freddie Mac announced Thursday morning that mortgage rates were essentially unchanged, at 2.87 percent. “Throwing Money At The Problem”: Neat Capital is offering refinance and mortgage applicants a $500 discount if they’re vaccinated. LA Eviction Moratorium Upheld:…
Mortgage rates held steady despite a tug-of-war between economic recovery and the fiscal impact of rising Covid-19 cases, according to Freddie Mac’s Primary Mortgage Market Survey (PMMS®). The 30-year fixed-rate mortgage averaged 2.87 percent with an average 0.6 point for the week ending August 26, 2021, up slightly from last week’s 2.86 percent. A year ago at this time, the 30-year FRM averaged 2.91 percent. The 15-year fixed-rate mortgage averaged 2.17 percent with an average 0.6 point, up slightly from last week when it averaged 2.16 percent. A year ago at this time, the 15-year FRM was 2.46 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.42 percent with an average 0.2 point, down slightly from last week when…
As first-time and lower-income buyers are being squeezed out of bidding wars against cash-rich investors, the homestead exemption could help combat take over by Wall Street, columnist and investment professional Conor Sen argued in Bloomberg. FHFA is attempting to address this issue by awarding a higher percentage of federal-backed mortgages to low-income households or for homes in minority communities. But Sen suggested that goal, while admirable, might not actually lead to major change and suggested that relying on the homestead exemption might prove more fruitful. The homestead exemption is a legal exemption that can shield owners from property taxes, but only for people actually living in the home. Sen argues that local governments can help homebuyers by increasing the amount…
An investigation by The Markup found that lenders in 2019 were more likely to reject loan requests from people of color than white people, even if their finances looked much the same. The Markup examined more than 2 million conventional mortgage applications using statistical analysis that held 17 factors steady to account for explanations traditionally used to explain racial disparities in lending: the borrower’s credit history, debt-to-income (DTI) ratio and loan-to-value (LTV) ratio. According to The Markup, the bias was evident in the credit scoring algorithm “Classic FICO,” which was developed in the 1990s. Fannie and Freddie require lenders to use Classic FICO to determine whether an applicant meets their minimum threshold. Classic FICO focuses on traditional credit but does…
The Mortgage Bankers Association (MBA) reports mortgage applications increased 1.6 percent during the week ending August 20, 2021. They also report the Refinance Index increased 1 percent from the previous week and was 3 percent higher than the same week one year ago. Refis accounted for 67.3 percent of total applications, no change from the week before, while adjustable-rate mortgages fell to 3.1 percent of total applications. Lower rates led to an increase in refinance applications, with government loan applications jumping 10 percent to the highest level since May 2021,” said MBA’s Associate Vice President of Economic and Industry Forecasting Joel Kan. As for the housing market as a whole, Kan says there may be signs of cooling. “There was…
Mortgage refinancing exploded in July, according to mortgage data analyst Black Knight. The report shows rate lock volume, the number of borrowers who locked in their mortgage rate, jumped by 5.5% in July. Rate/term refinance grew 24% month-over-month, while cash-out refinance grew 20%. The Federal Housing Finance Agency (FHFA) decided in mid-July to remove the adverse market refinance fee put in place in 2020. The 0.5% fee was intended to alleviate any future financial burden placed on Fannie Mae and Freddie Mac by the effects of the pandemic. Instead of a downturn, the housing market soared. The boom in refinancing is directly linked to the FHFA’s decision to reverse course. And now “[r]efinance volumes were undoubtedly boosted” by its repeal, Black Knight…
Mat Ishbia appears to be the odd man out when it comes to handling fees from customers the feds are no longer collecting. On July 16, the Federal Housing Finance Agency (FHFA) announced it was ending the adverse market refinancing fee for loan deliveries effective August 1, 2021. The fee, designed to address risk from anticipated losses due to COVID-19, was always unpopular. Proposed by the Trump administration last summer, it was repeatedly delayed before going into effect in December. It was welcome news to the entire industry — data show a surge in mortgage applications in the week after the 50 basis point fee was lifted — but it may have been exceptionally good news for United Wholesale Mortgage…
Good morning! Today is Monday, July 19. Concerns about the Delta variant of the Coronavirus are putting downward pressure on stock and commodity futures. At least one U.S. gymnast has tested positive for COVID-19. Europe is reeling from a series of landslides. The Biden administration is blaming China for a hack of Microsoft Exchange email server software that compromised tens of thousands of computers around the world earlier this year. And in mortgage and housing news… Mortgage refinances spike: Low interest rates drove a 20% spike in mortgage refinance rates last week, with a declining 30-year fixed rate spurring heavy refi activity. Supply prices down: Wood futures are declining from their dizzying highs earlier this year, signalling potential relief for homebuilders, though…
Good morning! Today is Thursday, June 3. Israeli Prime Minister Benjamin Netanyahu’s rivals agreed to form a new government to oust Israeli leaders. NASA earmarked an initial $1 billion to send the first U.S. probes to Venus in over 30 years to study what made the Earth’s nearest neighbor inhospitable to life. The total number of great white sharks detected along the Cape has ballooned over the last few years as researchers continue to tag more of the big fish. And in mortgage and housing news … MORTGAGE APPS: The housing boom may be cooling as weekly mortgage demand drops again. AMERICAN RESCUE PLAN: Stimulus money for homeowners? How to tap a $10B mortgage relief fund. SQUARE FOOTAGE: Realtors often have to explain to home…
Good morning! Today is Wednesday, June 2. Securities regulators told Tesla last year that CEO Elon Musk’s use of Twitter had twice violated a court-ordered policy requiring his tweets to be preapproved by company lawyers. Zoom is reporting blowout earnings, but warns of a coming slowdown. Texas Gov. Abbott vows to defund the state legislature after Democrats blocked his voting restrictions bill. And in mortgage and housing news … MORTGAGE TECH: How do you make sure mortgage technology helps with your relationships. FAST CLOSINGS: A study finds that lenders are closing on mortgages more quickly. EVICTION MORATORIUM: The eviction moratorium will end. What happens to renters then? YAY INFLATION: Why debt-ridden millennials should be cheering for inflation. INSURANCE: Everyone needs homeowners insurance. This is what determines the price. MANUFACTURED HOMES: A CFPB…
