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.

January 21, 2022 Housing News MBA Says New Home Sales Tilting to Higher Priced Properties 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) Housing News Delinquencies Hit Recent Lows but so do Refinance Candidates   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) Rob Chrisman Pre-Qual, Vendor Mgt., Subservicer Review, Warehouse Products; Pandemic to Endemic? 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) Mortgage Rates Mortgage Rates Leveling Off at Long-Term Highs 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) 30 Yr. Fixed Rate 3.67% -0.02% Rate Change Points Mortgage News Daily 30 Yr. Fixed 3.67% -0.02 0.40 15 Yr. Fixed 2.94% -0.01 0.40 30 Yr. FHA 3.33% 0.00 0.00 30 Yr. Jumbo 3.32% -0.02 0.00 5/1 ARM 3.62% 0.00 0.50 Updates Daily - Last Update: 1/21 15 Yr. Fixed Rate 2.94% -0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 3.56% +0.11 0.70 15 Yr. Fixed 2.79% +0.17 0.60 5/1 Yr. ARM 2.60% +0.03 0.30 Updates Weekly - Last Update: 1/20 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 3.64% +0.12 0.45 15 Yr. Fixed 2.95% +0.22 0.43 30 Yr. Jumbo 3.54% +0.12 0.47 Updates Weekly - Last Update: 1/19 MBS / Treasuries MBS Live Recap: Another Green Day But MBS Underperform 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) UMBS 30YR 3.0 102.09 +0.09 Price / Yield Change MBS UMBS 3.0 102.09 +0.09 UMBS 3.5 104.27 0.00 GNMA 3.0 102.05 +0.02 GNMA 3.5 103.14 -0.25 Pricing as of: 1/21 11:49PM EST 10 Year US Treasury 1.7705 -0.0406 Price / Yield Change US Treasury 2 YR Treasury 1.016 -0.011 5 YR Treasury 1.572 -0.019 7 YR Treasury 1.728 -0.028 10 YR Treasury 1.771 -0.041 30 YR Treasury 2.085 -0.039 Pricing as of: 1/21 11:49PM EST Latest Video The 2pm Bond Report - January 21, 2022 The 9am Bond Report - January 21, 2022 Fed's doves vs. Fed hawks—who will win out in the end? December existing home sales down 7.1 percent year-over-year Around the Web CNBC More than 5 million borrowers just missed their chance to save on a mortgage refinance CNBC Markets are expected to remain on edge as the Fed meets in the week ahead Redfin Rental Market Tracker: Rents Rise 14% in DecemberBiggest Jump in Over Two Years jchs.harvard.edu Boom in Home Remodeling May Peak in 2022 Calculated Risk Blog Q4 GDP Forecasts: 5% to 6% Calculated Risk Blog Black Knight: National Mortgage Delinquency Rate Decreased in December; Foreclosures at Record Low Calculated Risk Blog Hotels: Occupancy Rate Down 16% Compared to Same Week in 2019 CNBC Treasury yields retreat; 10-year falls to 1.79% Calculated Risk Blog More Analysis on December Existing Home Sales CNBC Fed releases long-awaited study on a digital dollar, but doesn't take a position yet on creating one CNBC Jobless claims jump to 286,000, highest level since October Calculated Risk Blog NAR: Existing-Home Sales Decreased to 6.18 million in December CNBC Watch ECB's Lagarde and IMF chief Georgieva discuss the global economic outlook

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