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While new home sales have been performing well over the last few months, the Mortgage Bankers Association (MBA) expects a stumble in December. Its Builder Application Survey (BAS) data for the month shows mortgage applications for new home purchases decreasing 5.0 percent compared to November and by 7.1 percent from December 2020. This change does not include any adjustment for typical seasonal patterns. Based on the BAS and other assumptions such as market coverage, MBA estimates new single-family home sales were running at a seasonally adjusted annual rate of 887,000 units in December. This is a decline of 2 percent from November’s 905,000 unit pace. On an unadjusted basis, there were an estimated 60,000 new home sales in December, down 7.7 percent from 65,000 units in November. “Applications to buy a new home slowed in December, while the activity remained tilted to higher-priced homes ,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “Supply chain challenges, labor shortages, and higher materials costs also contributed to last month’s decline, as projects were delayed or cost more to complete. The average loan size set another survey record at $423,102, as these higher building costs are pushing sales prices higher.” By product type, conventional loans composed 77.2 percent of loan applications , FHA loans composed 12.6 percent, RHS/USDA loans composed 0.4 percent and VA loans composed 9.8 percent. The record average loan size cited by Kan is an increase from $414,114 in November.
While new home sales have been performing well over the last few months, the Mortgage Bankers Association (MBA) expects a stumble in December. Its Builder Application Survey (BAS) data for the month shows mortgage applications for new home purchases... (read more)
In its first look at December’s loan performance data, Black Knight notes that 2021 ended with the foreclosure inventory at an all-time low and the national delinquency rate “just a hair off the near-record low” reached just before the onset of the... (read more)
As I head to Northern California, and mourning the loss of Meatloaf, I’m thinking, “Dang. I guess that I shouldn’t have put my entire 401(k) into Peloton stock a year ago,” a great combination of home exercise and technology. Brad Paisley sang, “…And... (read more)
Today was one of the most uneventful days in recent memory for mortgage rates. The average lender is in very similar territory compared to yesterday, and there has been far less intraday volatility through 3pm E.T. While things may be ho-hum over the past 2 days, rates are still in bad shape compared to most of the past 2 years. In jus... (read more)
Another Green Day But MBS Underperform
Bonds rallied today with 10yr yields dropping more than 6bps by the 3pm CME close. That's the type of improvement that normally makes for a nice day of mortgage market improvement, but today, mortgage rates were just barely lower. Blame MBS underperformance and relat... (read more)
Interest rates displayed are national averages and for informational purposes only. Actual rates from lenders may vary based on several factors including, but not limited to, credit worthiness, ability to replay, credit score, down payment, loan term, etc.