Foreclosures | Mortgages | Financing
Mortgage bankers have nudged up their expectations for purchase financing during 2018 and 2019. But next year’s outlook for refinance production diminished.
During the final-three months of this year, $415 billion in single-family loan originations — including loans to finance home purchases and refinances — are predicted.
U.S. mortgage production is then expected to drop to $344 billion in the first-quarter 2018 and bounce up to $450 billion three months later.
From:: Financing
While weekly new mortgage activity turned lower ahead of Christmas, there was a year-over-year gain. The share of prospective borrowers extracting cashout or opting for an adjustable-rate mortgage continued to grow.
Mortgage Daily’s U.S. Mortgage Market Index, which provides insight into upcoming loan originations based on average per-user rate locks by OpenClose clients, was 121 in the week ended Dec. 22.
The index, which is not adjusted to reflect seasonal factors, tumbled 17 percent versus the preceding week. But a more telling comparison is the year-over-year change: up 7 percent.
From:: Financing
After ascending to the highest level this year, monthly secondary activity moved even higher at the Federal Home Loan Mortgage Corp. Serious mortgage delinquency, however, deteriorated.
The government-sponsored enterprise’s total mortgage portfolio finished November at $2.0821 trillion, according to its Monthly Volume Summary: November 2017.
McLean, Virginia-based Freddie Mac’s book of business continued to grow from the prior month, when it was $2.0671 trillion, and a year prior, when it stood at $1.9948 trillion.
From:: Financing
Interest rates increased last month and were also higher this week. Short-term and long-term predictions have further rate increases ahead.
At 4.24 percent, average 30-year note rates on mortgages that closed in November were 4 basis points more than they were during the preceding month.
The increase was far more substantial compared to the same 30-day period last year, when 30-year residential loan rates averaged 3.81 percent.
From:: Financing
An agreement has been struck for the government-sponsored enterprises to maintain a small capital buffer. While the modifications addresses immediate concerns, lawmakers need to come up with a long-term housing finance solution next year.
On Thursday, the Department of the Treasury issued a statement indicating that it has agreed with the Federal Housing Finance Agency to modify the Preferred Stock Purchase Agreements with Fannie Mae and Freddie Mac
Previous modifications to the PSPAs required that the pair of secondary mortgage lenders pass through all their profits to the Treasury in the form of dividends — wiping out any capital buffer.
From:: Financing
Despite a small improvement in the foreclosure rate, overall mortgage delinquency jumped as the hurricanes took a toll. SeriOut of the estimated 51.075 million loans secured by single-family loans that were outstanding as of Nov. 30 of this year, 2.661 million were considered non-current.
The non-current total was comprised of 2.324 million mortgages that were at least 30-days delinquent but not in foreclosure and another 0.337 million units in the foreclosure inventory.
From:: Financing
Compared to a year ago, average credit scores have declined, average loan-to-value ratios have increased and average debt-to-income ratios have risen. Closing ratios have deteriorated, but turnaround was faster.
Conventional loans made up two-thirds of mortgages closed in November, a fifth were mortgages insured by the Federal Housing Administration, and a 10th were guaranteed by the Department of Veterans Affairs.
While there was no change in the share from the previous month, there was a shift from the same month in 2016, when conventional share was wider at 68 percent, and VA share was thinner at 9 percent.
From:: Financing
Last month’s rate of pre-owned home sales climbed to the highest level in more than a decade, with the Midwest leading the month-over-month gain. The supply of homes fell to a record low.
During November, sales were completed on 427,000 existing single-family homes, townhomes, condominiums and co-operatives.
That brought pre-owned residential home sales for the period that began on Jan. 1 of this year and concluded on Nov. 30 to 5.086 million units.
From:: Financing
With applications for loans to finance a home purchase leading the way, weekly mortgage application activity moved lower. Refinance share, though, was the widest it’s been in a year.
New mortgage application volume receded by 5 percent from one week earlier, according to the seasonally adjusted Market Composite Index for the week ended Dec. 15.
When seasonal factors are disregarded, the index, a measure of retail residential loan application activity, tumbled 6 percent from the week ended Dec. 8.
From:: Financing
On a quarter-over-quarter basis, mortgage lenders have reduced the amount of risk they took. But there was an increase from a year earlier as refinance share retreated.
The Housing Credit Index for the third-quarter 2017 came in at 111.1. The index reflects six credit-risk attributes for mortgages that were originated from July1 to Sept. 30.
Home lenders cut their risk on single-family loans from the preceding three-month period, when the index was previously reported to be 117.
From:: Financing