The Key to Reducing Post-Refi Boom Borrower Churn

In this webinar, PRMG Chief Lending Officer Kevin Peranio will help attendees sort through the right technologies as he shares the tech investments that have had the biggest impact on his business.

Tracey Velt breaks down the latest RealTrends 500 rankings

During the episode, Velt highlights which brokerages achieved top rankings in both categories for 2020, and shares what stood out to her the most about the rankings.

Navigating Closing Struggles in 2021’s Purchase Market

Join this webinar to discover the most current information on hybrid and full eNote eClosings and discuss key criteria to successfully implementing your eClosing strategy.

About 7M refi candidates missed the “forever rate” boat

Rates jumped to 3.17% last week and Black Knight reported that there are now just 11.1 million “high quality” refi candidates. The smallest number of potential refi candidates in a year.

Mortgage

FHA mortgage applications surge on low interest rates

The Market Composite Index rose 3.8% last week

With last week’s mortgage rates continuing to hover near historic lows, the Mortgage Bankers Association indicates mortgage applications ticked up by 3.8%.

This means on an unadjusted basis, the index moved forward 3.8% for the week ending on Dec. 11, 2019.

Applications rose significantly for Federal Housing Administration loans, as FHA borrowers sought to refinance their mortgages thanks to near-yearly lows in interest rates on FHA loans.

Joel Kan, MBA’s associate vice president of economic and industry forecasting, said low mortgage rates continue to be on-trend as 2019 comes to an end, and mortgage applications responded accordingly last week.

“The 30-year fixed mortgage rate remained under 4% for the fourth straight week, and rates for FHA loans declined close to their lowest level of the year,” Kan said. “The decrease in FHA rates led to a 27% jump in refinance applications for those loans, and their share of refinance activity – at 14%– was the highest since 2016.”

According to the MBA, the seasonally adjusted Purchase Index fell by 0.4% from one week earlier, while the unadjusted Purchase Index increased by 35% from the previous week.

Although purchase applications declined slightly from the previous week, Kan said they were still 5% higher than a year ago, which is still in line with the gradual growth seen in the purchase market throughout 2018.

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

  • The refinance share of mortgage activity increased to 62.4% from last week’s 59%.
  • The adjustable-rate mortgage share of activity rose to 5% of total applications from the previous week’s 4.8%.
  • The Federal Housing Administration’s share of mortgage apps rose to 13.9% from last week’s 12%.
  • The Department of Veterans Affairs share of applications fell to 12.4% from last week’s 12.7%.
  • The Department of Agriculture share of total applications remained unchanged from last week’s 0.5%.
  • Mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased from last week’s rate of 3.97% to 3.98%.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased from last week’s 3.91% to 3.9%.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 3.79% from last week’s 3.83%.
  • The average contract interest rate for 15-year fixed-rate mortgages held steady from last week’s 3.37%.
  • The average contract interest rate for 5/1 ARMs rose to 3.52% from last week’s 3.28%.

Most Popular Articles

Millions will enter housing market in 2021: Zillow

Up to 2.5 million households could enter the housing market in 2021, per Zillow. The buyers will descend on the “secondary cities” across the U.S.

Apr 07, 2021 By

Latest Articles

William Raveis ain’t no stinkin’ iBuyer

Like others, resi brokerage & lender William Raveis is happy to buy your home. But its new program doesn’t mean it’s an iBuyer.

Apr 09, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please