Purchase Loans Jump As Rates Dip Again

Mortgage loan application volume rose last week, responding to a dip in rates, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, increased by 2.7%.  The 30-year fixed rate once again fell below 7%, propelling potential buyers into action. Rates have been going back and forth between the high 6.90s and low 7s for several weeks. This drop from 7.14% to 6.90% is the largest single-week decline since July 2022. The adjusted purchase index rose 4%, while the unadjusted purchase index decreased by 10% and was 46% lower YOY.  “Application activity, adjusted to account for the Veterans Day holiday, increased in response to the drop in rates – driven…

Dwindling Refis Eclipsed Rising HELOC, Purchase Lending In Q2 2022

Refinance lending fell 36% from Q1 to Q2 2022, eclipsing increases in other lending areas, according to ATTOM’s second-quarter 2022 U.S. Residential Property Mortgage Origination Report. The report found that 2.39 million mortgages secured by residential property were originated in Q2 2022, down 13% from Q1 and 40% YOY. This is the fifth consecutive quarter of falling originations and the biggest annual drop since 2014. Though purchase originations and home-equity lending actually increased 8% and 35%, respectively, they were heavily outweighed by the double-digit refi drop. The total number of mortgages issued was down 13.2% from Q1 and 40% YOY, dropping at their fastest pace in eight years. Lenders issued $807.8 billion worth of mortgages overall in Q2, down 11%…

Inventory Rose In May For The First Time Since June 2019

Inventory increased for the first time since June 2019, with active listings up 8% YOY, according to Realtor.com’s May housing data. An inventory increase is a good sign for the market, which is facing pressure as rising rates and soaring home prices are causing potential buyers to back off. The national median listing price in May was $447,000, up 17.6% YOY and 35.4% from May 2020. Purchase loan applications are down 14% YOY, reaching their lowest level since December 2018. However, active listings were still down 48.5% from May 2020, meaning inventory is still half of what it once was. And while active listings grew, the total inventory of unsold homes, including pending listings, fell by 3.9% thanks to a…

Purchase, Cash-Out Rate Locks Rose In January

Overall rate locks rose 9.5% month-over-month in January, with a 19.9% increase for purchase loans and a 9.2% increase for cash-outs, Black Knight reported in its Originations Market Monitor. Rate/term refinance locks dropped for the fifth month straight, down 16.5% to its lowest level since May 2019. It is an 80% decline YOY. The refinance share of January originations fell to 43%, its lowest since July 2019. “With some $10 trillion in homeowner tappable equity in the market, it makes sense that we’d see cash-out refinance locks on the rise,” Happ said.  “The significant jump in purchase originations can likely be attributed in part to typical pent-up, post-holiday demand. It could also represent skittish homebuyers hoping to lock in a…