Mortgage loan application volume increased again last week, continuing a trend of rising demand as mortgage rates slip.
The Mortgage Bankers Association’s weekly survey showed the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 7%.
The results included an adjustment for Martin Luther King, Jr. Day.
Refinances drove the increase, up 15% from the week prior as mortgage rates fell to 6.2%, their lowest level since September.
They remain 77% lower than the same time last year, however, comprising only 31.9% of total applications. In the past decade, refis averaged 58% of total activity.
Purchase demand saw a boost as well, though not as drastic. Applications increased at a seasonally adjusted rate of 3%, but…
Prepayment activity dropped to a nearly 22-year low in September as interest rates rose to nearly 7%. According to Black Knight’s September 2022 First Look. prepayment activity slid by 14.9% to a single-month mortality rate of 0.57% in September, besting January 2019’s record of 0.59%. It’s the lowest level since November 2000. Inflation is a factor in low prepayment activity, says Jacob Channel, LendingTree’s senior economic analyst. “Since the start of the year, inflation has increased significantly and as a result, many households likely have less cash that they can allocate toward non-necessities like putting extra money toward their mortgage payment,” he told MarketWatch. Black Knight also reported that the national delinquency rate fell 0.2% from August to 2.78%. This…
By TMN Editor The Consumer Financial Protection Bureau wants the public to weigh in on ways to improve the mortgage process for homeowners who would benefit from refinancing. They are especially looking for borrowers with smaller loan balances. CFPB Director Rohit Chopra said in a statement that the mortgage market has not provided products that allow all households to save money by refinancing at a lower interest rate. “We are eager for input on ways that borrowers taking out loans today can refinance to lower rates in the future,” Chopra said. According to a press release, the agency is also looking for input on automatic short-term and long-term loss mitigation assistance for homeowners who experience financial disruptions. For more information,…
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…
