Items Tagged with 'refis'

ARTICLES

  • Hello refis? Mortgage rates just had the largest one-week drop in 10 years

    Interest rates haven't been this low since January 2018
    Just over six months ago, it appeared that refinance demand had all but dried up thanks to mortgage interest rates that were pushing past 4.5%. But my how the tables have turned. According to newly released data from Freddie Mac, mortgage rates just experienced the largest one-week decline in a decade.
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  • Housing market trends are stifling the jumbo mortgage market

    But the WSJ says lenders aren't backing down
    In the years following the financial crisis, mortgage lenders turned their attention to the jumbo mortgage market as high-end clients proved to be a safe and profitable bet. But now, recent trends taken a toll on the jumbo market, causing volume to fall 12% in the last year, a decline that outpaces the overall mortgage market by 5%. "Still, there are few signs banks are changing tack," The Wall Street Journal stated. "If anything, industry watchers say, they are becoming more competitive."
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  • Kroll says some banks are rethinking viability of mortgage lending business

    Predicts challenging market conditions will have some small retail operations closing up shop
    The mortgage industry has witnessed very few mergers and acquisitions in the last year, despite what Kroll Bond Rating Agency calls a "fertile environment" for M&A activity. Why? Blame low profits and high origination costs. According to KBRA, the climate has some banks rethinking their positions, with some selling of mortgage assets and others simply exiting the business completely.
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  • Cash-out refis haven’t been this prevalent since the financial crisis

    But unconcerned experts say borrowers are extracting less equity than before
    The volume of cash-out refinance loans hasn’t been this high since 2008, but experts at the Urban Institute say that when put into context, there’s no cause for alarm. “In an environment of home price appreciation, people commonly tap into their home equity,” the authors wrote, adding that the total amount of equity cashed out is well below pre-crisis totals.
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  • Joel Kan: 3% to 4% growth predicted for the purchase market

    Refinance market still slated to struggle
    The purchase market is due for a rebound, according to Joel Kan, MBA associate VP of industry surveys and forecasts. Kan told members of the audience in a Q&A session at MBA Annual that current macroeconomic trends should create a swell for the purchase market – good news for the flagging mortgage market.
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  • MBA: Mortgage applications can't seem to get ahead

    Refinance Index drops to lowest level in 18 years
    Mortgage applications fell 1.8% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending September 7, 2018. On an unadjusted basis, the Mortgage Composite Index decreased 13% from the previous week.
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  • HARP refis dwindling as homeowners gain equity

    Loan-to-value ratios continue to shrink
    The Home Affordable Refinance Program continues to shrink, making up just 1% of total refinance volume in the second quarter. And as the program grows closer to expiring at the end of this year, the FHFA shows there are still many borrowers eligible for a HARP refi.
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  • Goodbye refi: Rising interest rates all but erase refinance demand

    Purchase loans now make up nearly 75% of all mortgages
    While mortgage interest rates dipped ever so slightly in the last week, they’ve been trending up for the majority of this year. And it appears that the consistent rise in interest rates this year has all but dried up refinance demand. Is it time to say goodbye to refis for a while? It certainly looks that way.
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  • MBA: Lender profits to hit negative numbers in Q1

    Refi market served as blanket for seasonality drops
    It’s no secret mortgage refinance volumes are falling, leaving lenders to make up for the loss through purchase mortgages. Profit margins are expected to go negative in the first quarter as the blanket that helped with seasonality drops is now being lifted.
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  • ARMCO: Mortgage critical defect rate decreases in Q3 2017

    Majority of defects occurred in borrower and mortgage eligibility
    As purchase mortgages shrank in the third quarter last year and refinances increased, the number of critical defect rates dropped, according to a new report from ACES Risk Management. Most of the defects occurred under the borrower and mortgage eligibility category.
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