Mortgage rates moved modestly higher today, depending on the lender. Once again, pricing strategies remained widely variable due to market volatility. When the trading prices of mortgage-backed-securities (MBS) changes enough during the day, lenders may reprice (i.e. change their currently-published rate sheets). Depending on the amount of movement in underlying markets, some lenders will reprice while others won't.
Today was a good example. Trading levels began in decent enough ground, but bond markets (which include MBS) quickly deteriorate in the afternoon as stock markets broke higher.
Saying it was "deeply concerned" about how marketing services agreements are undermining consumer safeguards against kickbacks, the Consumer Financial Protection Bureau (CFPB) has issued guidance about them directed to the mortgage industry. The Bureau released a bulletin on Thursday which offers an overview of the federal prohibition against kickbacks and the risks lenders face when then enter into the agreements.
A loose definition of marketing serves agreement is a contract by which one company will market another company's products. In the mortgage world these agreements have sometimes taken the form of providing tangible rewards to real estate agents for referring their customers for mortgages or provision of joint marketing materials or events. The relationships are not limited to lenders and real estate agents but have also involved title insurers, escrow agents, private mortgage insurers, and others.
In case you missed it, last month Fannie Mae began to transition the multi-graph and narrative report detailing results of its National Housing Survey (NHS) into a different format, the Home Purchase Sentiment Index (HPSI). The Index distills responses to six survey questions about consumers' home purchase sentiment into a single number which the company says "reflects current and forward-looking housing market outcomes and complements existing data sources to inform housing related analysis and decision making."
The HPSI summarizes consumers attitudes about whether it is a good or bad time to buy or to sell a house, what direction they expect home prices and mortgage interest rates to move, how concerned they are about losing their jobs, and whether their incomes are higher than they were a year earlier....(read more)
Mortgage rates put in another day with minimal movement today. If there was a detectable bias, it was toward slightly higher rates, but many lenders didn't move at all. That leaves the predominant range of conventional 30yr fixed rate offerings between 3.75% and 3.875%. It's worth mentioning that the most common rate quotes don't normally exist in as wide a range as we're seeing now. Recent volatility and varying lender strategies have resulted in a clear gap between between the front of the pack and the rest of the pack.
Additionally, we're starting to see some lenders adjust their default lock time frames with the onset of the new TILA/RESPA Integrated Disclosure (TRID) rules....(read more)
The housing industry has long expected that pending home sales in a given month will fairly accurately forecast the actual sales transactions that follow one or two months later. But Bin He - principal economist with the CoreLogic Decision Analytics & Research Team (DART), thinks we may be overlooking some other predictive abilities of the pending sales data.
A sales becomes pending when an offer to purchase is accepted and a contract is signed. The most common data on pending sales is a monthly report published by the National Association of Realtors® but He used data from CoreLogic Listing Trends and his analysis indicates that pending home sales might also offer a preview into the future of home prices, at least those measured by CoreLogic's HPI. His results appear in the CoreLogic Insights blog.
Declining rates, an impending hurricane, the Blood Moon - who knows what was behind - it but mortgage application volume went a little crazy last week. The Mortgage Bankers Association said its Market Composite Index and all of its components shot through the roof during the week ended October 2. MBA's Weekly Mortgage Applications Survey data had the seasonally adjusted composite index up 25.5 percent from the previous week while on an unadjusted basis it rose 26 percent.
The unusual movement was across the board with the Refinancing Index rising 24 percent from the week ended September 25 and the seasonally adjusted Purchase Index up 27 percent....(read more)
Mortgage rates managed to hold their ground in most cases today. That's a refreshing turn of events considering the forceful move higher seen on Friday afternoon and yesterday. Granted, that spike in rates followed a strong move to the lowest levels in over 5 months on Friday morning, but it was still not fun to see all of Friday's gains erased. In that sense today didn't add any additional insult to injury. Most lenders are right in line with yesterday's latest levels though there are a few who marginally increased costs. That means that borrowers would still likely be seeing the same note rates as yesterday, with Conventional 30yr fixed loans being quoted in a range from 3.75 - 3.875%....(read more)
CoreLogic said on Tuesday that its Home Price Index (HPI) including distressed sales rose on a year-over-basis for the 42nd consecutive month in August. The HPI was up 6.9 percent compared to August 2014, the second month in a row that the annual increase was at that level. The index was up 1.2 percent compared to July.
As we noted last month, the differential between CoreLogic's two HPIs, one including and one excluding distressed property sales had narrowed to the point of being negligible. The company has apparently discontinued the public reporting of the latter index.
A loosening of access to GSE (Freddie Mac and Fannie Mae) loans in September, contributed to a slight increase in the Mortgage Credit Availability Index (MCAI.) The Mortgage Bankers Association said that its index increased 0.3 percent in September to a reading of 126.5. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index has risen steadily, except for a slight downturn in July, since October 2014.
The MCAI consists of four component indices. Of the four, the Conventional MCAI saw the greatest loosening, rising 1.1 percent over the month. The Conforming MCAI was up 0.8 percent. The Jumbo MCAI was unchanged over the month and the Government MCAI decreased 0.2 percent.
Mortgage rates moved substantially higher today in the context of recent day-to-day changes. In the broader context, we're still talking about 30yr fixed rates that have remained in the "high 3's" for over a week now. It's just that today's "high 3" is an eighth of a point higher than Friday's. Lenders that had moved down to quoting conventional 30yr fixed rates of 3.625%, are now back to 3.75% in many cases. less aggressive lenders that were just beginning to quote 3.75% are now back up to 3.875%. More simply put, today's average rate sheet is back in line with last Thursday's. Those were great at the time and they'd be the best in more than 5 months apart from last Friday.