Refi Appetite Falters with Rising Rates
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...Equity Rises $2.9 Trillion for Homeowners in 2021 2nd Quarter
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...Keys to the Appraisal Concerns within the Private Lender Sector
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...Mortgage Application Volume Stumbles
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...Refinance Application Numbers Ticks Upwards
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...Connect With Us
