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.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

A real estate professor weighs in on the future of MLSs

According to research done by Sonia Gilbukh, a real estate professor at Baruch College, there are some reasons to be concerned about the current number of real estate agents and the future of MLSs.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Mortgage

Purchase mortgage applications rise as Treasury yields fall

Mortgage applications rose 1.6% on the week ending Aug. 20, moving in concert with a drop in Treasury yields, according to the latest report from the Mortgage Bankers Association.

The market composite index moved 1% on an unadjusted basis from the prior week. Refis ticked up 1% from the prior week and purchase mortgage applications jumped 3%, the trade group said on Wednesday. The purchase index was at its highest level since early July, though it was still down 16% from the same time last year.

“Treasury yields fell last week, as investors continue to anxiously monitor if the rise in COVID-19 cases in
several states starts to dampen economic activity,” said Joel Kan, the MBA’s associate vice president of economic and industry forecasting. “Mortgage rates slightly declined as a result, with the 30-year fixed rate decreasing for the first time in three weeks. Lower rates led to an increase in refinance applications, with government loan applications jumping 10 percent to the highest level since May 2021.”

Kan also noted that purchase applications for both conventional and government loans increased on the week that ended Aug. 20. But the average loan size on purchase mortgage applications fell, he said, “which is potentially a sign that more first-time buyers looking for lower-priced homes are being helped by the recent uptick in for-sale inventory for both newly built homes and existing homes.”

The mix of refis was unchanged from the previous week at 67.3% of total applications.

According to the MBA, the FHA share of total applications increased to 11% from 9.4% the week prior. The VA share of total applications decreased to 10% from 10.3% the week prior. The USDA share of total applications was unchanged from the prior week at 0.4%.

The average contract interest rate for a 30-year-fixed rate conventional mortgage decreased to 3.03% from 3.06%. The MBA survey found that the average interest rate for a 30-year-fixed-rate mortgage with jumbo balances — greater than $548,250 — decreased to 3.13% from 3.19% the week prior.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.38% from 2.41%. Similarly, the average interest rate for 5/1 ARMS decreased to 2.68% from 2.90% from the prior week.

Leave a comment

Most Popular Articles

Lenders mandated to use FHA Catalyst for appraisals

Starting March 14, 2022, the Federal Housing Administration will require all lenders to use FHA Catalyst for appraisals.

Sep 21, 2021 By

Latest Articles

Existing home sales pop the 2021 housing bubble boys

So far this year, every existing home sales print has been higher in 2021 than the closing level of sales in 2020, which was 5,640,000. Even with the unhealthy home price gains that we have seen in the last two years, more Americans have bought homes with mortgages in 2020 and 2021 than any single year from 2008-2019, and this looks perfectly normal with our current demographics. HW+ Premium Content

Sep 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please