Home Mortgage Applications on the Rise Again
Last week mortgage application volume jumped 8.15% from the week prior. The previous two weeks application volume saw decreases after starting the year strong. Refinance volume was the highest, up 11% from the previous week, reaching the highest level since March 2020. This level of refinance activity was 59% higher than this time last year. The FHA share of mortgage application volume went down to 9.1% from 9.4% the previous week. The VA share of mortgage application volume went down also, dropping from 12.4% to 12.1% this...Do Mortgage Rates Have Seasons?
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
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
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
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...Connect With Us
