Eight Best Marketing Practices to Fund New Loans Faster

Join our expert panelists to learn which best marketing practices will help you get to your customer quickly with your best offer – and win their business for another loan term.

engage.marketing event: All eyes on purchase

To help power your business forward, we’re bringing together the smartest minds in purchase mortgage marketing to share the insights, tactics and strategies that set leaders apart.

Home appraisal’s ugly history and uncertain future

This is Part I of a deep dive into the home appraisal industry. Today we explore the origins of the appraisal industry and its current lack of diversity.

2021 Agent Rankings now live

Today RealTrends + Tom Ferry announce the 16th annual The Thousand of America's top 1,000 real estate sales and professionals and teams.

Mortgage

Americans are buying homes again, mortgage data shows

Purchase applications gain 6% while mortgage refinancings drop, MBA says

Americans are returning to the housing market, as evidenced by a jump in applications for mortgages to purchase homes, though not at the same level as last year.

A seasonally adjusted index measuring purchase applications rose 6% in April’s last week, compared to the prior week, according to a report Wednesday from Mortgage Bankers Association.

Purchase volume increased for the third week in a row, led by strong growth in Arizona, Texas and California, according to Mike Fratantoni, MBA’s chief economist.

We’re still not back to where we were during last year’s spring market, he said, as about half of U.S. states begin resuming some level of economic activity amid the COVID-19 pandemic.

“Although purchase activity remains almost 19% below year-ago levels, this annualized deficit has decreased as more states reopen amidst the apparent, pent-up demand for homebuying,” Fratantoni said.

MBA’s overall index measuring purchase and refinance applications advanced 0.1% on a seasonally adjusted basis from a week earlier while the group’s refinance index decreased 2% from the previous week – though it remained 210% higher than the same week a year ago.

The refinance share of mortgage activity decreased to 70% of all applications from 72% the previous week, Fratantoni said.

Some of the decline in refi applications is due to pandemic-related job losses that restrict a homeowner’s ability to apply for a new loan, and some has to do with the terms of the mortgages lenders are offering.

“Despite lower rates, refinance applications dropped, as many lenders are offering higher rates for refinances than for purchase loans, and others are suspending the availability of cash-out refinance loans because of their inability to sell them to Fannie Mae and Freddie Mac,” Fratantoni said.

The share of applications for mortgages backed by the Federal Housing Administration fell to 11.1% from 11.5% a week earlier, the report said. The share for home loans backed by the Veterans Administration remained unchanged at 13.3%.

Leave a comment

Most Popular Articles

Mortgage forbearance drops as expiration date nears

Mortgages in forbearance fell for the 15th consecutive week last week to 4.04% of servicers’ portfolio volume ― a 12 basis point decline, according to a survey from the Mortgage Bankers Association.

Jun 14, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please