After Weeks of Decreases, Mortgage Application Numbers Rise this Week

Bob Vaughan

According to a report from the Mortgage Banker’s Association, mortgage applications saw a modest 0.2% increase the week ending August 5th.  Refinance volume rose enough to barely edge out the decrease in new purchase applications marking an overall gain in application volume. Refinance applications made up 32% of total applications last week. As rates continue to remain volatile, being ready to act on financing applications will provide an advantage.

 

  • The FHA share of mortgage applications increased to 12.1% from 11.9% the previous week.
  • The VA share of mortgage applications increased to 10.9% from 10.8 the previous week.

United States House Passes Bill for Online Notarizations

Bob Vaughan

Late last week the United States House of Representatives passed a bill creating new federal standards allowing notaries across the county to perform remote online notarizations. The goal of this bill, formally called the “Securing and Enabling Commerce Using Remote and Electronic” or SECURE Notarization Act of 2021, is to move the housing industry closer to fully electronic mortgages. Legislature in 41 states had already existed similar to this bill prior to last week’s vote and now the SECURE Notarization Act will strengthen the use of electronic notarizations on a federal level. The bill specifically requires United States courts and states to recognize these notarizations that affect interstate commerce even in some situations where the individual is located outside the United States, subject to certain requirements. Continuing to modernize the real estate industry as a whole through technological advances will allow professionals in all states to have an easier time closing deals.

Mortgage Applications Decrease for the Fourth Straight Week

Bob Vaughan

According to data from the Mortgage Bankers Association’s weekly survey, mortgage application volume decreased 1.8% in the week ending July 22nd. This marks the fourth straight week less mortgage applications have been submitted. Refinance applications specifically have decreased 4% from the previous week and were 83% lower than this same time last year. Mortgage rates have begun to stabilize after the volatility of the last few months but increased economic uncertainty has caused some potential buyers to drag their feet.

 

  • The FHA share of mortgage application volume decreased from 12.4% to 12.1% this past week.
  • The VA share of mortgage application volume remained at 10.6% this past week.

New Mortgage Interest Drops According to New Survey

Bob Vaughan

According to the most recent survey from the Mortgage Bankers Assocation, new mortgage application numbers have decreased 6.3% for the week ending July 15th. This marks the third week in a row that new mortgage applications have dropped. The demand for refinances specifically has reached a 22-year low making up only 31.4% of total applications.

 

  • The FHA share of total application volume increased from 11.7% to 12.4% this past week.
  • The VA share of total application volume decreased from 11.2% to 10.6% this past week.

New Application Numbers Dip Once Again

Bob Vaughan

According to a report from the Mortgage Bankers Assocation new mortgage applications decreased 1.7% for the week ending July 8th. Refinance application volume increased 2% during the same period and was 80% lower than this same time a year ago. Refinances made up 30.8% of total application volume during this period.

 

  • The FHA share of mortgage application volume decreased from 12% to 11.7% this period.
  • The VA share of mortgage application volume increased from 11.1% to 11.2% this period.

Mortgage Applications Decrease

Bob Vaughan

According to a report from the Mortgage Bankers Association, new mortgage applications decreased 5.4% from the prior week for the period ending July 1st. When you look at new mortgage application volume year-over-year there was a total decrease of about 78%. Refinance application volume specifically dropped 8% from the previous week and made up 29.6% of total new applications.

 

  • The FHA share of mortgage application volume remained at 12% this week.
  • The VA share of mortage application volume decreased from 11.2% to 11.1% this week.

Mortgage Numbers Increase Last Week

Bob Vaughan

According to data from the Mortgage Bankers Association mortgage application volume increased 4.2% in the week ending June 17th. Refinance volume specifically fell 3% during the same period making the year-over-year refinance application volume 77% lower than the same week ago last year. Refinance application volume made up only 29.7% of total applications last week.

 

  • The FHA share of total application volume increased to 12% from 11.8% the prior week.
  • The VA share of total application volume decreased to 10.7% from 11.7% the prior week.

Almost Half of All Homeowners Considered Equity Rich

Bob Vaughan

As home prices continue to soar, the number of homeowners that are now considered “equity rich” has reached nearly 45%, a 13% increase year-over-year. For a homeowner to be considered equity rich they must have at least 50% equity in their home, which has become a much easier feat with rising home prices across the country. Idaho, Vermont, Utah and Washington had the highest rate of equity rich owners in Q1 of 2022. In the opposite case, only 3.2% of mortgaged homes were considered seriously underwater in the first quarter of 2022. Any homeowner owing 25% more than the current market value of their home is considered seriously underwater. Mississippi, Louisiana, and Wyoming had the highest level of mortgages considered seriously underwater. As home prices continue to rise as the back half of 2022 comes into sight, it’s expected that more and more homeowners will be considered equity rich going into 2023. By the same token it’s expected less homeowners will be considered seriously underwater on their mortgage.

First-Time Buyers Becoming Timid About Homebuying

Bob Vaughan

Fannie Mae’s Home Purchase Sentiment Index tracks the housing market and consumer confidence to either buy or sell a home. In April, this index reached 68.5 marking the lowest level in the index since May 2020. The index is made up of six components including whether or not consumers believe it’s a good time to buy or sell and whether or not mortgage rates will rise or fall. According to the survey 76% of consumers think it’s a bad time to buy a home. The largest portion of survey responders that answered this way were between the ages of 18 to 34, showing that an increase in interest rates is concerning to many first-time homebuyers. Also included in the survey are questions about a consumer’s employment and income outlook. 84% of consumers believed they had nothing to worry about in regard to losing their jobs, but only 26% of consumers were making more money than this time last year.

New Mortgage Volume Slips 1.2%

Bob Vaughan

According to a report from the Mortgage Bankers Association, new mortgage application volume fell 1.2% for the week ending May 20th. Refinances made up 32.3% of total application volume, marking a 0.7% decrease from the previous week. As interest rates start to steady, it will be interesting to see the effect on new mortgage demand.

 

  • The FHA share of new mortgage applications increased to 11.3% this week.
  • The VA share of new mortgage applications fell to 10.4% this week.