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?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

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

Mortgage apps rise despite higher interest rates

The increase was mainly driven by the purchase index, according to the MBA

Mortgage applications increased 1.8% for the week ending Nov. 19, despite higher rates, according to the Mortgage Bankers Association (MBA) survey published on Wednesday.

The increase was mainly driven by the purchase index growing by 4.7% from the previous week, on a seasonally adjusted basis. Concurrently, the refinance index grew by 0.4% from the week prior.

Joel Kan, the MBA’s associate vice president of economic and industry forecasting, said in a statement that purchase activity increased for the third straight week, as housing demand remains robust, even as the housing market approaches the typically slower holiday season.

“Both conventional and government loan applications increased, and the average loan size for a purchase loan was at $407,200, continuing its ongoing 2021 run of being mostly above $400,000,” Kan said.

Regarding refi activity, Kan added that “borrowers continue to lock in mortgages in anticipation of higher rates in the future.”  


How lenders can turbocharge mortgage operations for today’s home buyers

For lenders, the past few months have been placed a strong emphasis on purchase originations. In light of this, HousingWire sat down with Saleforce’s Global Head for Mortgage and Lending, Geoff Green, to learn how lenders can better turbocharge mortgage for today’s home buyers.

Presented by: Salesforce

However, mortgage applications declined across the board in comparison to a year ago. The overall market composite index dipped 24.5% on a seasonally adjusted basis. Meanwhile, “refis” apps fell 33.6% year-over-year, and purchase apps decreased 6% in the same period, a symptom of even lower levels of inventory.

According to Khan, financial markets continue to discern the Federal Reserve’s policy in light of the current high growth, high inflation environment.

The trade group estimates the average contract 30-year fixed-rate mortgage for conforming loans ($548,250 or less) increased to 3.24%, four basis points higher than the previous week. For jumbo mortgage loans (greater than $548,250), it went to 3.28% from 3.26%.

Refi represented 63.1% of total applications, up from 62.9% the previous week. VA loans consisted of 10.3% of the share, decreasing five basis points. Meanwhile, FHA loans went from 8.9% to 8.6% in the period. The USDA share was at 0.4% of the total.

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