Posts Tagged ‘refi’

Housing Affordability May Plummet in 2018

Posted on November 21, 2017 by Laura Lam

During the recent CoreLogic and the Urban Institute’s Housing Finance, Affordability and Supply in the Digital Age conference, CoreLogic Chief Economist Frank Nothaft predicted rising interest rates will cause home prices to rise.  Mortgage interest rates are expected to continue rising over the next couple years as experts predict the Federal Reserve will raise the Federal Funds rate in once more this year in December and up to 4 more times in 2018. As the chart shows, CoreLogic forecasted it will rise to 4.7% by December 2018. Nothaft explained as mortgage interest rates increase throughout 2018, less current homeowners will be motivated…

Purchase Lending Hits 10-Year High

Posted on September 12, 2017 by Laura Lam

During the second quarter of 2017, purchase originations jumped significantly even as refinances shrank, according to Black Knight Financial Services’ latest Mortgage Monitor report.  First lien mortgages jumped 20% from the first quarter and 16% from last year to $467 billion in the second quarter. During the second quarter, refis fell 20%, or $37 billion, from the second quarter to 31% of the market share of originations, the lowest level in 16 years.  However, the 57% quarterly surge in purchase originations more than made up for the fall in refis. This is an increase of 6% from last year to $321…

Average Mortgage Loan Size Hits All-Time High

Posted on March 16, 2017 by Laura Lam

The average loan size for purchase mortgage applications hit an all-time high last week, according to the latest data from the Mortgage Bankers Association.  The MBA’s Weekly Mortgage Applications Survey for the week ending March 3, 2017 showed that the average loan size for purchase applications was $313,300.  That’s the highest that figure has been during any week since the MBA began conducting its weekly application survey in 1990. Overall, the MBA’s report showed that mortgage applications increased 3.3% from the previous week.  The report also showed that the Refinance Index increased 5% from the previous week to the highest level since…

How Will Trump’s Win Affect the 2017 Mortgage Industry?

Posted on November 14, 2016 by Laura Lam

Rising interest rates will trigger a downturn in refinance activity in 2017, while purchase originations will rise, according to the Mortgage Bankers Association’s most recent industry forecast. But those projections, released in late October, assumed a continuation of housing and economic policies that would have come with a Hillary Clinton win. According to MBA Chief Economist Michael Fratantoni, it would be been easier to predict Clinton’s policies.  However given the high-level nature of Trump’s campaign proposals, he said it’s more difficult to gauge what the specific impact will be.  “We’ll learn a lot more about that in the coming weeks,”…