Lunch & Learn: Are appraisals the next big opportunity in mortgage fulfillment?

This Lunch & Learn for mortgage lenders will explore the evolution of the appraisal process as well as opportunities for innovation.

Why brokerages and mortgage lenders are rushing into JVs

Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy.

How to simplify the appraisal process for everyone in today’s hot market

While the world might be slowly getting back to normal, the housing boom is far from over. Appraisers need to make sure they have the right tools to manage the high demand.

Robert Dietz on why the single-family rental market is growing

In this episode of HousingWire Daily, NAHB's Robert Dietz explains why the marketshare of single-family rentals is growing despite strong homebuyer demand. He also discusses the NAHB’s latest Housing Market index.

Mortgage

30-year mortgage rate tracked by MBA drops below 3%

First time since February the MBA rate has been below 3%

Mortgage applications fell 1.7% in the week ending July 30, according to the latest report from the Mortgage Bankers Association. That’s despite the 30-year fixed rate falling to its lowest level in roughly six months.

It’s an about-face from the prior week, in which applications increased 5.7% on the strength of descending mortgage rates.

Mike Fratantoni, MBA’s senior vice president and chief economist, said this past week’s drop in mortgage applications can be attributed to the market’s assessment of the latest COVID-19 delta variant.

“Thirty-year mortgage rates dropped below 3% in our survey for the first time since February, presenting an opportunity for many homeowners who have not yet refinanced to lower their rate and payments,” he said. “Refinance application volume slightly decreased following an 11% jump last week, and purchase application volume decreased again, reflecting the ongoing lack of inventory that continues to drive rapid home-price appreciation across the country.”

The refinance share of activity of total mortgage applications increased slightly to 67.6% from 67.5% the previous week. On an unadjusted basis, the market composite index decreased 2% compared with the previous week (when it increased 6%). The seasonally adjusted purchase index decreased as well, down 2% from the previous week.


How mid-year market shifts are impacting originators

The greater need for cash-out refinances drives originators to prepare with diverse product offerings. Additionally, originators will now need to have a way to qualify self-employed borrowers who may need to rely on bank statements to qualify for a mortgage. 

Presented by: FGMC

The FHA share of total mortgage applications remained unchanged at 9%, and the VA share of total mortgage applications increased to 9.9% from 9.8%.

Here is a more detailed breakdown of this week’s mortgage applications data:

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 2.97% from 3.01% — the first time since February that 30-year rates sank below 3%
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.12% from 3.11%
  • The average contract interest rate for 30-year fixed-rate mortgages increased to 3.08% from 3.03%
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.33%, the lowest level in the history of the survey, from 2.36%
  • The average contract interest rate for 5/1 ARMs increased to 2.93% from 2.81%, with points decreasing to 0.20 (including the origination fee) from 0.23 for 80% LTV loans

Leave a comment

Most Popular Articles

Why brokerages and mortgage lenders are rushing into JVs

Joint ventures are suddenly stitched into the fabric of a handful of national brokerages. But the idea of the joint venture collides with the loose, informal networks that color the American housing economy. HW+ Premium Content

Oct 25, 2021 By and

Latest Articles

What does the future hold for appraisal tech?

HW+ Managing Editor Brena Nath had the opportunity to catch up with Global DMS President and CEO Vladimir Bien-Aime at MBA Annual to talk more about what’s next for the appraisal industry in terms of technology.

Oct 27, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please