Mortgage Bankers Association

Purchase loans tick upward, even as housing demand pushes prices well above 2020 levels.

Net production income was down from its peak in the third quarter of last year, but it set a survey record for the period between January and March.

The MBA’s Market Composite Index decreased a seasonally adjusted 4% last week, dropping to a point not seen since February 2020.

While purchases increased, refinancing activity slowed considerably compared to its pace over the past month.

Average loan size also continues to increase, as demand remains high and costs in homebuilding materials rise this year.

The rate of new forbearance requests as a share of portfolio volume also dropped to its lowest point since March, the Mortgage Bankers Association reported.

Purchase loan volume also increased, as borrowers tried to take advantage of rate dips across all loan types

Expansion of an existing translation clearinghouse is among steps that could be taken, the Mortgage Bankers Association suggested in a letter sent to the leaders of the House Financial Services Committee on Wednesday.

The recent increase in loan size across all application types reflects rising prices, which contributed to a drop in applications, Mortgage Bankers Association economist Joel Kan said.

Short-term late payment rates rose again and later stage delinquencies remain at elevated levels compared to those prior to the pandemic, the Mortgage Bankers Association said.

After a one-week reprieve, mortgage activity waned again with decreased demand for refinances and extremely low inventory for homebuyers.

The modifiable templates are a follow-up to a similar notification the organization created in 2019 for lender use.

Inflation, an improving economy and the increased federal budget deficit make rate increase inevitable this year, the Mortgage Bankers Association said.

While purchase volume is seeing its usual seasonal pickup, lower rates caused a spike in activity among existing homeowners looking to refinance.

And with demand far outweighing supply, the average new-home purchase loan ascended to another record high.

But the percentage of weekly applications in that category was closer to 60%, the Mortgage Bankers Association found.

However, companies were largely unable to use that cash infusion to make investments that lower their costs, since they had to pay out more in compensation.

However, the number of borrowers who failed to remit payment but were not yet 30 days overdue increased.

Efforts to improve representation in the workforce have to be measurable in order to avoid becoming an empty trend, according to the Mortgage Bankers Association’s chief financial officer and diversity & inclusion officer.

Volumes were at a record high in the final quarter of 2020 but lenders didn’t make quite as much since gains on loan sales to the secondary market fell.