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

Mortgage rate drops to within 1 basis point of all-time low

The average U.S. rate for a 30-year fixed home loan is 3.24%, Freddie Mac says

The average U.S. rate for a 30-year fixed mortgage dropped to within one basis point of an all-time low this week, according to Freddie Mac.

The rate fell to 3.24% from 3.28% last week, close to the 3.23% all-time low reached in April’s final week, according to the report.

The low rates are spurring housing demand as states ease lockdown restrictions, said Sam Khater, Freddie Mac’s chief economist.

“As states reopen, we’re seeing purchase demand improve remarkably fast, now essentially flat relative to a year ago,” Khater said.

The trend for mortgage rates is downward, according to major forecasters. Fannie Mae projected last week the average this quarter would be 3.2%, followed by 3.1% in the third quarter and 3% in the fourth quarter.

Fannie Mae is forecasting an average of 2.9% for every quarter of 2021.

“The low-interest-rate environment is expected to persist for the remainder of the year, with mortgage rates potentially falling below 3% by the start of 2021, which, combined with our expectation of a recovery in employment, should support housing activity,” the Fannie Mae forecast said.

That probably will push refinancing volume to a 17-year high, according to the forecast. Lenders likely will originate $1.5 trillion in refis in 2020, a 51% jump from 2019, according to the forecast. That would be the highest level since 2003 when $2.5 trillion of mortgages were refinanced, according to data from the Mortgage Bankers Association.

The purchase market is likely to be more sedated as home sales in 2020 drop 15% because of job layoffs and economic contraction, the forecast said. Mortgage lending for home purchases probably will decrease to $1.1 trillion this year from $1.3 trillion last year, the forecast said.

Freddie Mac’s report also included changes in the average rate for two other types of home loans on Thursday. The average 15-year fixed rate averaged 2.7%, down from 2.72% last week.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.17%, down from last week’s rate of 3.18%.

Leave a comment

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