Rates Down, Jobs Up, But Mortgage Applications Still Decline

Posted To: MND NewsWire

The week preceding the Independence Day holiday saw a further decline in mortgage applications for both home purchases and refinancing. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, decreased 1.8 percent on a seasonally adjusted basis during the week ended July 2 and was down 2 percent on an unadjusted basis. The Refinance Index declined 2 percent from the previous week and was 8 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 61.6 percent of total applications from 61.9 percent the previous week. The Purchase Index was 1 percent lower than the preceding week on both an adjusted and unadjusted basis. The volume was 14 percent lower than the same week one year ago. Refi…(read more)

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Source: Mortgage News Daily

CoreLogic Sees Home Buyers Passing Rather than Compromising

Posted To: MND NewsWire

CoreLogic report for May is yet another reporting home prices are still moving higher. May’s year-over-year appreciation of 15.4 percent was the highest since 2005. On a monthly basis the April to May gain was 2.3 percent. Detached properties appreciated at a rate of 17.2 percent, nearly double the 9.1 percent rate for attached properties as prospective buyers continue to seek out more space. The company says that many millennials and Gen Z home buyers are continuing to move into the hot market thanks to low borrowing rates, but high prices are likely deterring increasing numbers of prospective buyers – especially first-time and low-income families. Currently, 82 percent of consumers called housing affordability a key problem in a recent CoreLogic survey and 33 percent noted they would wait…(read more)

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Source: Mortgage News Daily

Sellers Are Rejecting FHA/VA Backed Offers

Posted To: MND NewsWire

The Urban Institute (UI) says it appears that the current sellers’ market is having a negative impact on government backed loans and the borrowers who need to use them. In an article posted on UI’s Urban Wire blog, Janneke Ratcliffe and Laurie Goodman write that, while soaring home prices and historically low inventories of available homes have been good for sellers, many of them are unwilling to accept offers backed by FHA or VA financing. In a recent survey of agents conducted by the National Association of Realtors (NAR) found 89 percent of sellers would be likely to accept an offer from a buyer with conventional financing, but only 30 percent if the buyer were using a government-backed loan. Six percent would not even consider such an offer. UI says that data collected through the Home…(read more)

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Source: Mortgage News Daily

MLO Jobs; Pre-Qual, Warehouse, CE, Marketing, Sales Tools; CFPB: Worth Keeping an Eye On

Posted To: Pipeline Press

Dang it is becoming more and more expensive to follow all the rules and regulations to originate residential loans. These costs, of course, are borne by the consumer. (See some of the CFPB’s news below.) And it costs a lot to retire. You don’t have to specialize in reverse mortgage lending to be curious if people in or nearing retirement know how to create viable retirement income plan. (In fact, this is a good tool to help teach kids.) The results from the American College of Financial Services Retirement Income Literacy Quiz show not so much. The test, consisting of 38 multiple-choice questions, covered virtually every aspect of managing one’s finances in retirement. Nearly 75% of the 1,244 adults ages 60 to 75 interviewed online for the test got an F (a score of 60% or less)…(read more)

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Source: Mortgage News Daily

MBS Week Ahead: First Venture Outside Castle Walls For 10yr in 4 Months

Posted To: MBS Commentary

2021 began with heavy selling pressure in bonds following the Georgia senate election (which gave full control of congress and the White House to one political party, thus making it easier to create more supply in the bond market). Additional selling motivations surfaced in the coming weeks with Feb 25th being the worst day of organic weakness for the bond market since the 2016 presidential election ("organic" means it wasn't like the temporary, artificial weakness seen in the few days at the start of the pandemic as yields found bottom after screaming out for the Fed's assistance). All that to say 2/25/2021 was a big day with big volume–one that began with a confirmed break above 1.44% (for the first time since the pandemic began). Now today begins with the first confirmed…(read more)

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Source: Mortgage News Daily

Rates Defy Jobs Report (And Other Weekly Highlights)

Posted To: Mortgage Rate Watch

A heat wave on the west coast got national attention this week. Despite temps close to 120°, Tuesday’s home price data was even hotter with both of the big reports telling the same story. FHFA prices (nationwide) are increasing at a record pace . Case Shiller (20 major metro areas) price appreciation isn’t quite back to its pre-mortgage-meltdown level. How hot is too hot? That depends. Prices can’t continue this pace indefinitely, but many people said the same thing late last year only to regret not pulling the trigger. Some recent sales numbers cast doubt on buyers’ willingness to chase these prices, but now this week’s Pending Home Sales report shows that May was one of the best months on record. Rates had a good week , with most lenders at or near their best levels since mid June at…(read more)

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Source: Mortgage News Daily

MBS RECAP: What To Make of The Post-NFP Rally

Posted To: MBS Commentary

What To Make of The Post-NFP Rally Nonfarm Payrolls (NFP) beat forecasts (850k vs 700k), which is normally something that would put upward pressure on rates. While that seemed like a threat for the first 14 minutes, things calmed down nicely from there and bonds hit their early closing times with moderate gains intact. Rather than try to force this outcome to fit some narrative (i.e. "this wasn't enough to derail the Fed's rate-friendly policies"), let's keep things simple. The Fed has already been clear that NOTHING will be enough to derail those policies in the next month or three, so data like this merely helps shape the small scale trends inside a broader sideways range. We should also take today's action with a grain of salt given the early close and 3.5-day weekend…(read more)

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Source: Mortgage News Daily

AE, MLO, Underwriter Jobs; ECOA, Productivity, QC Tools; Agency Updates; Jobs Report and Mortgage Rates

Posted To: Pipeline Press

I realize that this is a commentary about lending, but it is good for MLOs to be cognizant of what their real estate agent client’s clients want… In a kitchen. And here’s a handy dandy chart from builders showing popular kitchen features . My grandmother had one, and I want one: a walk-in pantry! Lots of people want lower rates, despite them often being an indicator of a weaker-than-expected economy, and recently the risk-free 10-year T-note, with no risk of default or prepayment, hit 1.36%. I love the fact that after the last Federal Open Market Committee meeting, plenty of people jumped on the “rates are going up for the rest of the year” bandwagon. Experienced capital markets personnel never bet on the market going one way or the other , and the 10-year dropped…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: The Day is Young, But Strong NFP Isn't Killing Bonds

Posted To: MBS Commentary

While the headline for nonfarm payrolls (850k vs 700k f'cast) seems like cause for concern at first glance, the bond market is digesting it well so far today. Internal components may be helping to offset the headline (unemployment up 0.2%, workweek down 0.2 hours, wages missed by 0.1 and were revised down 0.1 for last month). Bonds have traded both sides of 'unchanged' post payrolls. That could continue to be the case as the day progresses. Even if yields move back to their AM highs of 1.46%, that would still be a strong showing in the face of a strong NFP headline. For now, they've been spending more time at slightly STRONGER levels, if you can believe that. Stocks are also stronger, which adds to the notion that markets are viewing this installment of the jobs data as "not…(read more)

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Source: Mortgage News Daily

Mortgage Rates Face Bigger Risks in The Coming Days

Posted To: Mortgage Rate Watch

Mortgage rates have had several good weeks now after being dealt a blow by the Fed announcement on June 16th. Said “blow” is relative , to say the least. Rates technically never departed the lower 3% range, and they remain there now, albeit closer to 3.0–especially for purchases. In fact, “low 3’s” arguably applied to most of 2021. Nothing about the coming days is likely to change that, even if the risk of volatility will be higher. The most obvious hurdle to clear will be tomorrow morning’s jobs report–traditionally the most important piece of economic data on any given month as far as interest rates are concerned. While we know the Fed is waiting for several more months of data before making any big decisions on its rate-friendly policies, that won’t stop traders from moving preemptively…(read more)

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Source: Mortgage News Daily