Do Mortgage Rates Have Seasons?

by | Feb 4, 2021 | FHA Mortgage, Mortgage Information, Real Estate

In a recent study by tech startup Haus, they analyzed over 8.5 million mortgage originations between 2012 and 2018. In this study, Haus found that mortgage rates were the lowest in the beginning of the year around January when there were fewer home mortgage applications coming in. In order to compete for the lower levels of application volume, lenders were forced to make their rates more desirable than their competition. Of note, in 2020 this did not hold to be true as the high volume of mortgage originations allowed lenders to keep their prices relatively steady. That being said, as the economy begins it’s post-pandemic recovery it’s believed that mortgage rates will return to a more predictable pattern. According to a chief economist with Freddie Mac, mortgage rates are expected to stay near record lows as the economy continues to rebound this...

FHA Raises Single-Family Loan Limit

by | Feb 3, 2021 | FHA Mortgage, Mortgage Information, Real Estate

The Federal Housing Administration announced recently that the loan limit for single-family FHA mortgages will be increased from $331,760 to $356,362 in the majority of counties for 2021. The FHA is required to set single-family loan limits at 115% of area median house prices, subject to a ceiling and floor. This requirement was brought about by the National Housing Act per the Housing and Economic Recovery Act of 2008. The loan limit ceiling for single-family homes in high price housing areas will be raised from $765,600 to $822,375 for 2021. Recently the FHFA announced that the conforming loan limit for conventional loans was raised to $548,250 also, so the rise in FHA loan limits comes as no...

Home Mortgage Application Volume Drops for Second Consecutive Week

by | Jan 28, 2021 | FHA Mortgage, Mortgage Information, Real Estate, VA Mortgage

For the second week in a row, home mortgage application volume was down. Last week mortgage application volume dropped 4.1% despite being up 83% year-over-year. The second consecutive week of application volume decreases comes as mortgage rates see a slight uptick to close January.   The FHA’s share of mortgage application volume increased to 9.4% from 9.3% the previous week. The VA’s share of mortgage applications decreased tp 12.4% from 13.8% the previous...

Mortgage Application Volume Dips

by | Jan 21, 2021 | FHA Mortgage, Mortgage Information, Real Estate, VA Mortgage

Home mortgage application volume dipped 1.9% this past week after jumping 16.7% week-over-week the period prior. This dip was paced by a 5% drop in refinance activity. Despite last weeks slight drop, as the start to 2021 continues, we should see strong mortgage application numbers for both first time and repeat home buyers.   FHA’s share of mortgage application volume decreased to 9.3% of total application volume this past week. VA’s share of mortgage application volume increased to 15.8% of total application volume during the same...

First Week of the New Year Sees Mortgage Application Volume Jump

by | Jan 15, 2021 | FHA Mortgage, Mortgage Information, Real Estate, VA Mortgage

In the first week of 2021, mortgage application volume jumped 16.7% according to a report from the Mortgage Bankers Association. This comes as no surprise as year after year the market sees a jump in mortgage application volume to begin January after a slow finish to the year  prior due to the holiday season. An increase in refinance volume has once again been a major factor in rising application numbers, bringing them to the highest level since March of 2020.   FHA’s share of mortgage applications dropped to 9.6% from 10.1% the week before. VA’s share of mortgage applications increased by 2.2% from last week, reaching...