Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

[Chart] Mortgage standards are not loosening for the refi market

Black Knight: High-credit borrowers driving the purchase market

At first glance, a new industry report from Black Knight Financial Services (BKFS) appears to show that the average credit score for refinance applications is loosening.

However, with further investigation, the truth is that there is only a decrease in the number of high credit score borrowers since most of them likely already refinanced and taken advantage of the low interest rates.

The chart shows that lower credit score origination volumes remain unchanged, while the number of high credit score borrowers is declining.

Click to enlarge

Chart 1

(Source: Black Knight)

On top of all this, refinance originations as a whole have steadily declined since March, showing a 'refi burnout,' as most borrowers who were both interested in and could qualify for refinancing have already done so (and in many cases, numerous times). 

On the other side of the lending table, purchase mortgage originations surged in 2015, with Q2 up 15% over 2014 and Q3-to-date up 11% so far.

And unlike the refi market, high-credit borrowers are driving the surge.

Purchase loan activity among borrowers with less than a 700 score is flat to slightly down on a year-over-year basis.

Only 20% of purchase originations over the last 3 months have come from borrowers with credit scores below 700, the lowest level in over 10 years.

Additionally, weighted average credit score for purchase mortgages has hit a record high of 755.

The chart below shows the surge this year, compared to prior years.

Click to enlarge

Chart 2

(Source: Black Knight)

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

Zillow: Over half of our iBuying inventory is on the move

Zillow said Thursday that more than 50% of its remaining iBuying inventory “has sold, is under contract to sell or has reached agreement on disposition terms.”

Dec 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please