“Exploring the Surge in US Mortgage Applications: Trend Analysis as of March 2024”

The rise in refinance applications resulted in an increase in the mortgage application volume for the second consecutive week. This was confirmed by the Mortgage Bankers Association, which stated that the Market Composite Index, a gauge of the volume, saw a 7.1 percent rise on a seasonally adjusted basis and 8.0 percent without adjustment.

Refinancing climbed 12.0 percent higher than the previous week and outdid the Refinancing Index from the same week in 2024 by 5.0 percent. Refinancing represented 31.6 percent of the submitted applications, which is an increase from the 30.2 percent reported a week prior.

There was a 5.0 percent increase in the seasonally adjusted Purchase Index compared to a week earlier, which jumps to 6.0 percent when unadjusted. However, it stayed 11 percent below the same week in the previous year.

Mortgage rates experienced a dip below 7 percent last week for most loan categories. This came as a response to the latest economic indicators portraying a decline in the service sector and less robust job market – characterised by a rise in unemployment rate and downward adjustments to job growth in prior months – as stated by Mike Fratantoni, MBA’s SVP and Chief Economist.

Although the purchase application volume had an increase during the week, it still remains roughly 11 percent lower than the previous year’s level. On the flip side, there was a 12 percent surge in refinance volume, with a significant 24 percent boost in the government refinance index.

Despite these large percentage increases, the level of refinance activities is still relatively low. Most of these activities likely involve borrowers who secured a loan at or near the peak of rates in the past two years.

“Analyzing the Recent Surge in Mortgage Application Volume: Unpacking the Current Housing Market Trends”

Minor changes in mortgage rates or the early signs of a spring buying season led to a boost in mortgage activity in the previous week, after what seemed like a period in reverse. An analysis presented by the Mortgage Bankers Association (MBA) indicated that, their Market Composite Index, which provides data on mortgage application volume, showed a surge of 9.7 percent on a seasonally adjusted basis from the week before. In its raw form, the Index showed a 12.0 percent rise. The Refinance Index saw a growth of 8.0 percent for the week ending March 1, albeit still 2.0 percent less than the same week in the prior year. The proportion of mortgage activity attributed to refinancing fell to 30.2 percent, down from 31.2 percent a week earlier. The index tracking purchase applications shows an increase of 11.0 percent when seasonally adjusted and a 13.0 percent improvement in raw figures. However, it remained 8.0 percent below the corresponding week from the previous year. MBA’s SVP and Chief Economist, Mike Fratantoni, noted that despite the recent inflation report aligning with expectations, mortgage rates dipped slightly, reducing the 30-year fixed mortgage rate to 7.02 percent for the past week. Fratantoni also highlighted the substantial rise in mortgage applications compared to the week that included President’s Day. He drew attention to the considerable increase in the volume of FHA loans, indicating the sensitivity of first-time homebuyers to minor rate fluctuations. He also pointed to the housing data showing a significant increase in new listings, a positive trend for the spring buying season due to the scarcity of available houses for sale.

Navigating Non-QM Mortgage Options: Expanding Your Horizons Beyond Traditional Loans

In the diverse world of real estate financing, Non-Qualified Mortgage (Non-QM) options are gaining traction, offering flexible solutions for those who might not meet the strict criteria set by traditional mortgage options. Whether you’re a business owner, investor, or someone with a unique financial situation, understanding Non-QM loans can open the door to homeownership or […]

“Exploring the Future and Strategy of Mortgage Lending: Pipeline Press Insights”

As February 29 signifies the addition of a 366th day to balance the calendar year with the astronomical or seasonal year, there’s always something fascinating to learn from astronomers. Correspondingly, we witness similar mysteries in the world of finance and business. For instance, when Wells Fargo exited correspondent banking, the move left other correspondent investors wondering about the underlying reasons. Currently, Rocket Companies is drawing attention as they plan to shut down Rocket Pro Originate, a mortgage origination platform for real estate agents and financial professionals, in June. What insights is Rocket acting upon that others may not be privy to?

Staying adaptable is key in this ever-evolving landscape. This week, I had the opportunity to conversate with Alanna McCargo, the president of Ginnie Mae, a crucial player in the scale of FHA & VA programs. Under McCargo’s leadership, Ginnie Mae is making concerted efforts to stay ahead of market shifts, providing immense support to first-time home buyers.

The week’s podcast, sponsored by nCino, producers of the technologically advanced nCino Mortgage Suite, will be available from 8:30AM ET. The Suite amalgamates mortgage-related processes, systems, and personnel with its three core products: nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics. A conversation with Tyler Prows from nCino about the influence of technological innovation on mortgage processes will also be featured.

For those in lender and broker services, an exciting new development has been unveiled: Dara by Sagent, the first-ever mortgage software platform to amalgamate all data and user experiences for servicers and homeowners throughout the entire servicing lifecycle. Dara significantly streamlines the mortgage servicing tech stack for the first time in years, focusing on six key areas: Core, Consumer, Default, Data, Movement, AI. It enhances auditing capabilities while minimising servicer errors, offering an unprecedented level of tech-based control and simplification.

“Analyzing Weekly Shifts in Mortgage Application Volume: A February 2022 Overview”

For the week ending on February 23, there was a noted drop in mortgage activity, marking the third week in a row of this trend. This has been confirmed by the Mortgage Bankers Association (MBA) whose Market Composite Index, used to track mortgage loan application volume, reported a 5.6 percent decrease on a seasonally-adjusted basis from the previous week; a 3.0 percent decrease before adjustment. The Refinance Index fell 7.0 percent compared to the week before and was also 1.0 percent lower than the same period last year. The volume of mortgage activity for refinancing shrank to 31.2 percent from 32.6 percent the week prior. The Purchase Index dropped by 5.0 percent on a seasonally-adjusted basis and 1.0 percent unadjusted. The volume was 12.0 percent less compared to the same week in the previous year. The Chief Economist at MBA, Mike Fratantoni, announced the slight decrease of the 30-year conforming rate to 7.04 percent, which is still approximately a quarter-percent higher than the rate at the start of the year. This rise in rates in the past few weeks has slowed down activity, particularly for those looking to refinance FHA and VA. However, applications for new homes have increased 19 percent, a glaring contrast to the 12 percent lag in purchasing existing homes when compared to last year. The evident disparity underlines the absence of existing inventory as the main obstacle to increase in purchase volume, yet mortgage rates exceeding 7 percent are also inimical to this growth.

“Analyzing the Surge in Mortgage Application Volume – February 2022 Insights”

As interest rates continue to rise, the number of mortgage applications has seen a considerable decrease. The rise in interest rates has particularly affected application volume in the week ending on February 16, with the Market Composite Index, which tracks this data, showing a 10.6 percent decrease on a seasonally adjusted basis. Before the adjustment, the volume had gone down by 8.0 percent. The fall was reflected in the Refinance Index as well, which shows an 11.0 percent decrease from the preceding week, but still managed a slight 0.1 percent increase compared to the same period a year ago. Refinancing applications made up 32.6 percent of all applications, down from 34.0 percent the week before.

The seasonally adjusted Purchase Index also experienced a downturn, but of 10 percent. Before any adjustments, the Index was down by 6 percent. Compared to the same week in 2023, however, Purchase applications were down by 13.0 percent.

This downward trend is attributed to mortgage interest rates that are once again exceeding 7 percent, after news in January suggested inflation was on the rise. This has diminished expectations of an imminent rate cut. As a result, there has been a significant decrease in mortgage applications, and this has been especially noticeable in the area of refinance applications. Growing worries about affordability have also arisen due to these changes in rate, as well as the increased cost of homes in a market that is seeing a supply shortage.

Yet, the size of the loans changed very little, with the average of all submissions being $381,800 and the average for purchase mortgages being $440,700. Similarly, the proportion of applications backed by the Federal Housing Administration (FHA) decreased slightly to 13.2 percent, and those guaranteed by the Veterans Affairs (VA) dropped to 12.1 percent, with USDA applications making up 0.5 percent of total applications.

In the same week, the average contract interest rate for 30-year fixed-rate mortgages experienced an increase to 7.06 percent. Meanwhile, the rate for FHA-supported 30-year fixed-rate mortgages grew to 6.91 percent. The rate for 15-year fixed-rate mortgages saw an 8-point boost to an average rate of 6.61 percent. Bearing witness to a similar rise was the average contract interest rate for 5/1 adjustable-rate mortgages, whose rate now stands at 6.37 percent. As for 30-year fixed-rate mortgages with jumbo loan balances, they now have a rate of 7.16 percent and 0.45 point. The ARM share of mortgage application activity has also grown, from 7.0 to 7.4 of the overall total applications.

“Exploring the Recent Fluctuations in Mortgage Application Volume: Key Insights and Analysis”

In the week leading up to February 9, a surge in mortgage rates led to a reduction in application activity. The Market Composite Index, used by the Mortgage Bankers Association (MBA) to track mortgage loan volume, fell 2.3 percent from the previous week on a seasonally adjusted basis. However, it rose by 2.0 percent when not adjusted for seasonal fluctuations. The refinance Index fell by 2.0 percent week over week but was 12.0 percent higher than the corresponding week a year earlier. Refinancing made up 34.2 percent of total mortgage applications, a slight decrease from last week’s 35.4 percent.

Joel Kan, MBA’s Vice President and Deputy Chief Economist, explained that application activity was weaker due to rising mortgage rates. He further pointed out the 6.87 percent rate for a 30-year fixed mortgage, the highest since December 2023, and the challenges posed by high rates and limited housing inventory. Refinance applications were also lower, with rates higher than those observed a year ago.

Additional data from MBA’s Weekly Mortgage Applications Survey showed a marginal increase in the size of mortgage loans, with the average loan size standing at $382,000. Meanwhile, purchase mortgages saw a substantial increase to $441,300. The FHA share of applications rose slightly to 13.4 percent while the VA share fell to 13.1 percent. The conforming mortgage interest rate rose by seven basis points to 6.87 percent.

The rate for jumbo 30-year fixed-rate mortgages (FRM) rose to 7.00 percent, while rates for FHA-insured 30-year FRMs and 15-year FRMs climbed to 6.68 percent and 6.53 percent respectively. Finally, the rate for 5/1 adjustable-rate mortgages rose to 6.30 percent and their share of total applications increased to 7.0 percent from 6.4 percent.

“Exploring Future Trends in Mortgage and Finance Industry: An In-Depth Analysis”

The perspective of life varies for everyone, and both loan originators and suppliers in the residential mortgage industry can tap into the massive $1.5-$2 trillion market, without relying on impressive weekly or monthly figures. The possibility of transformation exists in everything, even in bikes. Many operatives and suppliers endeavour to transform routine into remarkable experiences. Wall Drug and Buc-ee’s are great examples, showing that drug stores and gas stations can be exciting too.

Regarding the current state of mortgage rates for homeowners, the statistics are quite diverse. A significant 92% of homeowners with mortgages in the U.S. have rates below 6%. Further down, 82% have rates below 5%, 62% are below 4% and 24% have rates below 3%. Interestingly, about a third of the applications that mortgage lenders receive are for refinancing, as per the Mortgage Bankers Association (MBA).

This week’s podcast, sponsored by LoanCare, discusses the company’s successful 40-year track history of helping clients and homeowners navigate market changes. A leading mortgage subservicer, LoanCare ensures excellent customer service through its portfolio management tool, LoanCare Analytics™. The platform aids Mortgage Servicing Rights (MSR) investors by concentrating on client interaction, fluidity, and credit risk.

Living in a disaster-free US might be difficult to imagine considering the diverse natural threats that the country faces. This includes floods, storms, earthquakes, volcanoes, hurricanes, and fires, among other calamities. The Federal Emergency Management Agency (FEMA) is responsible for officially declaring disasters, and such declarations activate lender and investor policies. As the environmental consequences of climate change intensify, so do the rates of such disasters. A hefty 90% of all natural disasters cause some form of flooding, which has resulted in a cost of over $50 billion to Americans in the last decade alone.

“An In-depth Analysis: Trends and Influences on Current Mortgage Application Volume”

The first three weeks of the New Year saw a surge in mortgage application activity despite federal holidays hampering two of those weeks. An uptick in purchase loan activity was also observed each week. According to data from the Mortgage Bankers Association (MBA), the Market Composite Index, an indicator of mortgage loan application volume, experienced a 3.7 percent rise on a seasonally adjusted basis during the week ending January 19, after adjustments for the Martin Luther King holiday. However, without adjustments, the Index recorded a 4.0 percent drop from the prior week. The adjusted Refinance Index dipped by 7.0 percent compared to the previous week, an 8.0 percent decrease from the same week last year. On an unadjusted basis, it fell by 16.0 percent for the week and 8.0 percent year-over-year. Refinance application shares also lowered from 37.5 percent to 32.7 percent that week. The seasonally adjusted Purchase Index rose 8.0 percent each week while the unadjusted Purchase Index increased by 3.0 percent, though it remains 18.0 percent lower than the same week in 2023. Joel Kan, MBA’s Deputy Chief Economist, stated that mortgage rates saw a slight increase, but purchase activity’s upward trend persists. Conventional and FHA purchase applications are primarily driving this surge as some potential buyers aim to finalize their purchase plans early this season. Kan also noted that refinance applications fell last week, with homeowners finding little incentive to refinance due to the current rate levels.

“Exploring the Future of Real Estate: Insights into Mortgage Regulations and Innovations”

In Chicago, a novel draw known as “the rat hole” is capturing attention, while Denver piques interest with its National Ice Core Lab – a hub of icy research hosting samples from across the globe. Meanwhile, a vacation or permanent transition to sunny Phuket, Thailand might appeal as the island received a significant 88% spike in airport arrivals – an impressive 6.24 million in total – during 2023. The blossoming real estate market and the growing community of 420,000 residents, including a significant influx – approximately 27,000 – of Russians, adds to the island’s appeal. However, aim of the island is to shift from a purely tourist economy by attracting prosperous individuals to take up residence and stimulate development.

In the latest podcast, experience an interesting conversation with Marty Green from Polunsky Beitel Green on mortgage spreads and why 2024 could be a transformative year in mortgage industry. The episode also dives into the potential implications of NAR lawsuits. The series is presented by nCino whose Mortgage Suite, comprising three main products – the nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, streamlines the mortgage process from start to finish.

Meanwhile, Anchor Loans has introduced a new Third-Party Originator (TPO) Broker Channel dedicated to loan brokers and other third-party originators. This initiative comes in light of many banks and private lenders cutting back on venture and flip and construction lending, forcing house flippers and builders to seek assistance from brokers to secure reliable capital sources. Anchor Loans, present in 48 U.S. states, brings 25 years of experience, over $14B in loans, flexible loan programs, timely funding, express draw process, and diverse loan range to those involved in the real estate investment and development realms. For more information, interested parties can explore further here.