Mortgage Rates Surge to Over 2.5-Year High

Weekly mortgage rates surged to the highest level in more than two-and-a-half years, and the outlook is for them to stay put.

Thirty-year note rates averaged 3.81 percent on all residential loans that were closed during the month of November 2016.

Mortgage rates climbed 5 basis points from the previous month, while they were down from 4.23 percent a year previous.

Source: Mortgage Daily

Home Values and Prices Move Higher

National home values and Home Price Indices have gained more than 6 percent on a year-over-year basis, though one forecast has a smaller gain over the next year.

The Federal Housing Finance Agency reported Thursday that its seasonally adjusted purchase-only HPI was 240.2 in October, up 0.4 percent from the prior month.

FHFA’s index is based on home-sales data collected on residential loans that are purchased or guaranteed by Fannie Mae and Freddie Mac, which it regulates.

Source: Mortgage Daily

FHA Business Holds Up, But Delinquency Worsens

Residential business held up at the Federal Housing Administration, with refinances accounting for a bigger share of endorsements. But monthly loan performance deteriorated.

FHA finished the first month of its fiscal-year 2017 with insurance in force on 8,460,037 single-family loans, home-equity conversion mortgages and Title I loans for $1.2538 trillion.

The agency’s book of business was 8,461,151 loans for $1.2518 trillion as of Sept. 30, 2016, while it stood at 8,410,847 insured loans for $1.2261 trillion as of Nov. 30, 2015.

Source: Mortgage Daily

Mortgage Delinquency Up, Foreclosures Down

Although mortgage delinquency has deteriorated for three consecutive months, the number of loans in foreclosure fell to an almost 10-year low.

Residential loans that were delinquent at least 30 days or in the foreclosure pre-sale inventory numbered 2.761 million as of Nov. 30, 2016.

That was 55,000 more non-current loans than as of the end of the prior month. But it was 428,000 fewer units than as of the same point last year.

Source: Mortgage Daily

Non-Bank GSE Origination, Servicing Share Surges

The share of mortgages backed by Fannie Mae and Freddie Mac that are originated or serviced by non-bank companies has risen sharply in the last five years.

Non-depository firms that are unaffiliated with commercial banks originated less than 10 percent of single-family loans purchased by Fannie and Freddie in 2010.

But there has been a dramatic shift in loan originations for the government-sponsored enterprises, with non-banks generating nearly half of GSE business in 2015.

Source: Mortgage Daily

Secondary Activity Up at Freddie Mac

Monthly business was modestly higher at the Federal Home Loan Mortgage Corp., as was the government-sponsored enterprise’s portfolio.

Freddie Mac’s total mortgage portfolio concluded November at $1.9948 trillion. The balance was up from $1.9891 trillion a month earlier.

The McLean, Virginia-based firm’s total portfolio also rose compared to the same date a year earlier, when the balance came to $1.9319 trillion.

Source: Mortgage Daily

Dems Scrutinizing Former OneWest Chief's Record

Senate Democrats are scrutinizing the likely new Treasury secretary’s record on foreclosures while he was chief of OneWest Bank Group LLC.

Steven Mnuchin was the chairman and chief executive officer of the parent of OneWest Bank FSB before it was acquired last year by CIT Group Inc.

Last month, President-elect Donald J. Trump indicated that he intended to nominate Mnuchin to be secretary of the Department of the Treasury.

Source: Mortgage Daily

Election Not Yet Impacted Mortgage Metrics

Monthly metrics for mortgage originations have yet to reflect the impact from the presidential election — with the closing rate deteriorating, turnaround slowing and refinance share holding.

Of all residential loans closed during November, 68 percent were conventional mortgages, the same share it’s been since August. Conventional share widened from 64 percent a year earlier.

Mortgages insured by the Federal Housing Administration accounted for a fifth of all originations, also unchanged for four consecutive months but thinner than 23 percent in November 2015.

Source: Mortgage Daily

Mortgage Applications Rise Despite Worsening Rates

Even though interest rates on home loans have ascended to the highest level in more than two-and-a-half years, new mortgage applications still accelerated.

Loan applications during the week ended Dec. 16, as measured by the Market Composite Index, rose a seasonally adjusted 3 percent from the prior week.

Even when seasonal adjustments are not applied, new applications for residential loans still moved higher by 2 percent on a week-over-week basis.

Source: Mortgage Daily

Non-Banks Grow Share of Mortgage Originations

As U.S. residential lenders saw mortgage production soar on a quarterly basis, non-bank originators grabbed market share from their financial institution counterparts.

The country’s mortgage banking firms collectively originated $568 billion in home loans during the period that started on July 1, 2016, and concluded on Sept. 30.

Production accelerated from the previous three-month period, when the total was $488 billion, and the same quarter last year, when it was an upwardly revised $435 billion.

Source: Mortgage Daily