The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

Fannie Mae official questions purpose of AMCs

A Fannie Mae official Monday questioned the role of appraisal management companies, or “AMCs,” in evaluating houses.

Atlantic Bay Mortgage’s Chrissy Zotzmann Brown on secrets to success

Today, HousingWire Daily is joined by Atlantic Bay Mortgage Group’s Chrissy Zotzmann Brown for the Women of Influence podcast miniseries.

Why today’s housing market makes speed and agility crucial for lenders

In light of the state of the housing market, HousingWire sat down with Nomis Solutions CEO Frank Rohde to discuss why agility, speed and a better customer experience are more important than ever.

Mortgage

Mortgage applications continue to fall as rates climb

Refinance index falls to lowest level since September

Mortgage applications dropped for the second straight week — falling 2.2%, according to the latest report from the Mortgage Bankers Association.

The continued increase in mortgage rates is to blame, according to MBA’s Associate Vice President of Economic and Industry Forecasting Joel Kan. Rates have jumped north of 3%, with most recent reports showing it hovering around 3.5%.

New home applications are down as well, as builders are still suffering from missing construction crews and the skyrocketing price of lumber and building materials. Home prices in general are staying high, as well.

“Purchase market activity was up 5% from a year ago, as the recovering job market and demographic factors drive demand, despite ongoing supply and affordability constraints,” Kan said. “After reaching a recent high in the last week of January, the refinance index has since fallen 26% to its lowest level since September 2020.”

The refinance index decreased 4% from the previous week, and the overall index decreased 2%. The refinance share of mortgage activity decreased as well, to 62.9% of total applications from 64.5 % the previous week. The unadjusted Purchase Index, however, increased 3% compared with the previous week and was 5% higher than the same week one year ago.

“The purchase market helped offset the slump in refinances,” Kan said.

The FHA share of total mortgage applications increased to 11.7% from 11.6% the week prior. The VA share of total mortgage applications decreased to 10.3% from 11.1% the week prior.

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

  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.28% from 3.26%
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) remained unchanged at 3.34%
  • The average contract interest rate for 30-year fixed-rate mortgages increased to 3.25% from 3.20% — the second week in a row of increases
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 2.67% from 2.63%
  • The average contract interest rate for 5/1 ARMs increased to 2.82% from 2.69%

Leave a comment

Latest Articles

Can real estate brokerages survive without mortgage?

Real estate brokerages can survive, but only if they seriously invest in mortgage. So said members of a panel Tuesday on the evolution of the real estate brokerage during HousingWire Annual in Frisco, Texas. HW+ Premium Content

Sep 28, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please