Mortgage Application Volume Propped Up By Refinances

Bob Vaughan

For the week ending November 5th, mortgage application volume saw a 5.5% increase according to a Mortgage Bankers Association report. Refinances particularly saw a 7% increase in application volume despite being 28% lower than this time last year. New purchase application volume also rose 3% this past week.

 

  • The FHA share of total mortgage application volume increased from 9.9% to 10.2%.
  • The VA share of total mortgage application volume decreased from 9.2% to 8.8%.

As Q3 Ends, Purchase Mortgages Outpace Refinances

Bob Vaughan

This quarter marked the first time since the pandemic that applications for new purchase mortgages outpaced the application volume for refinances. New home purchase mortgages accounted for 53% of the total application volume in the 3rd quarter. The demand for rate and term refinances decreased 23% year-over-year marking the end of what many would consider a year plus long refinance boom.

With Rates Rising, Mortgage Activity Dips Again

Bob Vaughan

According to a report from the Mortgage Bankers Association, mortgage application activity dropped 6.3% for the week ending October 15th. As a part of this decrease, mortgage refinance application volume decreased for the fourth consecutive week marking the lowest level since July 2021. High levels of competition and rising home prices continue to scare some potential buyers out of the housing market.

 

 

Refi Appetite Falters with Rising Rates

Bob Vaughan

For the week ending October 1st, mortgage application volume dropped 6.9%. Refinance volume dropped 10% from the previous period amidst rising interest rates. Purchase activity also saw a 2% dip this past period. Year-over-year total mortgage application volume was down 15% compared to last year. Refinances still made up 64.5% of new mortgage applications despite falling from 66.4% the previous week.

 

  • The FHA share of mortgage application volume increased to 10.5% from 9.5% the previous period.
  • The VA share of mortgage application volume increased to 10.3% from 10.2% the previous period.

Equity Rises $2.9 Trillion for Homeowners in 2021 2nd Quarter

Bob Vaughan

According to a report by Corelogic, homeowners gained $2.9 trillion in equity during the second quarter. This $2.9 trillion gain equates to a 29.3% year-over-year increase from 2020. The growth in homeowner equity allows for tens of millions of Americans to feel a higher sense of financial cushion and fend off the fears of foreclosure brought about by the uncertainty of the pandemic. As the housing market continues to stay hot, equity in homes should continue to rise also.

Keys to the Appraisal Concerns within the Private Lender Sector

Bob Vaughan

According to John Tedesco, the senior VP of business development at Appraisal Nation, stiffer appraisal regulations and harder entry requirements for appraisers are leading to longer appraisal wait times with higher costs of completion. Because of the high demand for appraisals, appraisal wait times have increased from about five or six days to two or three weeks in some cases. Similarly, the price has risen from between $400-$500 to $700-$800. Appraisal Nation is one of the top appraisal management companies in the United States working with more than 26,000 appraisers every year completing 150,000 residential and commercial appraisals. Since 2013, the number of real estate appraisers has been rapidly falling. In 2013 there were over 89,000 licensed appraisers according to Appraisal Institute, but now there are only about 78,000 with 20% of them being older than 66. As the need for appraisals continues to rise and the work force ages towards retirement, new appraisers are needed to quell the increasing demand.

Mortgage Application Volume Stumbles

Bob Vaughan

Applications for new mortgages saw a 1.1% drop for the week ending September 24th according to a report from the Mortgage Bankers Association. Specifically, purchase mortgage applications dropped 1.2% while the refinance application volume dropped 0.9%. Mortgage rates were up slightly in this same period causing buyers and home owners looking to refi to consider waiting for the rates to fall again.

 

  • The FHA share of total application volume fell from 11.5% to 10.4% this past week.
  • The VA share of total application volume fell from 10.4% to 10.2% this past week.

Refinance Application Numbers Ticks Upwards

Bob Vaughan

The week after Labor Day saw a 4.9% jump in mortgage application volume per a report by the Mortgage Bankers Association. Leading this jump in volume was a huge increase in refinance applications, rising 7% from the previous week. Demand for housing continues to be high despite low inventory leading to higher prices as we enter fall. Overall applications for mortgages are 13% lower than this time last year, but the demand for housing remains well above normal levels.

 

  • The FHA share of mortgage volume increased to 11.5% from 9.9% the week prior.
  • The VA share of mortgage volume increased to 10.4% from 10.2% the week prior.

Purchase Mortgage Application Volume Trends Up

Bob Vaughan

Mortgage application volume increased 0.3% this past week ending in September 10th. This increase in application volume was led by purchase applications coming in at a much higher level than the previous weekly period. Refinance applications fell by 3% as the purchase applications rose 8%, marking the highest level of purchase mortgage applications since April 2021.

 

  • The FHA share of mortgage application volume dipped to 9.9% from 10.9% the week prior.
  • The VA share of mortgage application volume dipped to 10.2% from 10.4% the week prior.

Homebuyers Flocking to Florida

Bob Vaughan

The Sunshine State has seen a vast population increase in recent years, especially in Miami. According to a Redfin monthly migration report, the net inflow of Redfin users moving to Miami was 7,610. Last year during the same month 2,216 people moved to Miami. Of more local relevancy, Cape Coral saw 4,315 Redfin users move to the area, an increase from the 2,778 that moved to Cape Coral in July 2020. The warm weather, beaches, and low taxes are huge factors in the influx of new Florida residents. As we get later into 2021, we can expect to see a high volume of buyers continue to seek Florida housing.