Mortgage – HousingWire |
- Refi applications down 31% from last year
- Flagstar is banking on the private-label market
- October saw mortgage apps rise for new homes by 6%
| Refi applications down 31% from last year Posted: 17 Nov 2021 04:00 AM PST Refinance mortgage loan applications dipped 31% year-to-year on the week ending Nov. 12, according to a survey published by the Mortgage Bankers Association (MBA) on Wednesday. The refi volume decreased 5% compared to the previous week. Meanwhile, applications to purchase a new home declined 6% in one year. However, they were up 2% in comparison to the previous week. Overall, the Market Composite Index, a measure of the mortgage loan application volume, decreased 2.8% compared to the previous week and 23% year-to-year. Joel Kan, associate vice president of economic and industry forecasting at the MBA, said refi applications decreased for the seventh time in eight weeks, as mortgage rates increased following two weeks of declines. The trade group estimates the average contract 30-year fixed-rate for conforming loans ($548,250 or less) increased to 3.20%, four basis points higher than the previous week. For jumbo loans (greater than $548,250), it remained at 3.26%. "Activity has been particularly sensitive to rate movements, and last week's decline was driven by a drop in conventional and FHA refinance applications, which offset an increase in VA refinance applications," said Kan. He added that purchase applications increased for conventional and government loans, as demand shows resiliency in late fall when home buying activity typically slows. Stronger sales activity may continue in the weeks to come, shows the survey. Refi represented 62.9% of total applications, down from 63.5% the previous week. VA loans consisted of 10.8%, increasing six basis points. Meanwhile, FHA loans went from 8.8% to 8.9% in the period. The USDA share remained unchanged at 0.5% of the total. They were responsible for 18.2% of the U.S. homes purchased in the period, attracted by increasing returns on the investment. Sheharyar Bokhari, a senior economist at Redfin, said that increasing home prices had created opportunities for investors to reap big profits. "Those same factors have pushed more Americans to rent, which also creates opportunities for investors," he noted in a statement. The post Refi applications down 31% from last year appeared first on HousingWire. |
| Flagstar is banking on the private-label market Posted: 16 Nov 2021 01:29 PM PST  Flagstar Bancorp. has been on a tear in 2021 when it comes to pursuing private-label securitizations, with 13 deals backed by some 22,000 home loans valued at $8 billion now under its belt through mid-November of this year. A pending merger with a New York bank boasting $58 billion in assets, once finalized, promises to further bolster Flagstar's activity in the private-label space in the year ahead. Troy, Michigan-based Flagstar, a federal savings bank with some $27 billion in assets, and New York Community Bancorp (NYCB) announced plans to merge in April. The lenders' shareholders voted to approve the $2.6 billion deal in August. But the merger with NYCB, the top multifamily lender in New York, is not expected to close until sometime next year, as it still needs to be blessed by state and federal regulators. "Upon closing, the combined company will have $85 billion in total assets, operate nearly 400 traditional branches in nine states, and 86 retail lending offices across a 28-state footprint," NYCB stated in a press release. "It will have its headquarters on Long Island, N.Y., with regional headquarters in Troy, Michigan, including Flagstar’s mortgage business." That mortgage business has been driving Flagstar's robust private-label residential mortgage-backed securities (RMBS) activity so far this year. Through mid-November, that RMBS deal-making is split between securitizations backed by mortgages on investment properties and second homes, and offerings collateralized primarily by jumbo loans — the latter being high-value mortgages ineligible for purchase by Fannie Mae or Freddie Mac.  This content is exclusively for HW+ members.Start an HW+ Membership now for less than $1 a day.Your HW+ Membership includes: Already a member? log in The post Flagstar is banking on the private-label market appeared first on HousingWire. |
| October saw mortgage apps rise for new homes by 6% Posted: 16 Nov 2021 08:27 AM PST Mortgage applications for new home purchases dipped by 15.2% year-to-year in October, according to a monthly builder survey published by the Mortgage Bankers Association this week. However, on a month-to-month basis, activity was actually 6% higher in October than in the month prior. The strong monthly gain puts MBA's estimate of new home sales at its strongest pace since January 2021, the report said. Joel Kan, associate vice president of economic and industry forecasting at the MBA, noted in a statement that purchase activity in October was dominated by higher mortgage loan balance transactions, pushing the average new home loan size over $412,000—a record in the survey. In September, the average mortgage loan size of new homes clocked in at $408,522, the survey found. "Recent U.S. Census data show an increasing share of new sales are for homes yet to be built or still under construction, and a shrinking share of completed homes," Kan said. "Housing demand remains strong, and buyers are making quick decisions in a still very competitive market." Kan also noted that homebuilders continue to face delays and challenges from "supply-chain bottlenecks and rising costs." Continued material and labor shortages have made many homebuilders delay putting newly constructed houses up for sale. "Overall construction costs, as measured by the Producer Price Index (PPI), recorded an annual increase of 12.3% in October, which is almost five times the average annual change," he added. The trade group estimates that new single-family home sales were running at a seasonally adjusted annual rate of 897,000 units in Oct. 2021, up 6.4% from the September pace of 843,000 units. Meanwhile, on an unadjusted basis the report found that new home sales increased by 3% on a month- to-month basis, growing from 66,000 new home sales in September to 68,000 new home sales in October. Regarding product type, conventional mortgage loans reigned supreme, making up 75.7% of loan applications. FHA loans composed 13.5% of applications, while VA loans and USDA loans composed 10.3% and 0.5%, respectively. The post October saw mortgage apps rise for new homes by 6% appeared first on HousingWire. |
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