Refinance

While cash-out refinances were a “significant driver” of risky loans leading to the Great Recession, those mortgages pose less of a threat due to tighter underwriting standards, according to Milliman.

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.

Hedge accounting will align Fannie’s reporting with competitor Freddie Mac, and will address a mismatch between the recorded value of financial instruments used to offset interest-rate volatility on mortgages and the loans themselves.

Only $89 billion of the $362 billion in new single-family volume came from purchase mortgages.

It would be available to homeowners making 80% or less of their area’s median income who weren't eligible to tap into low rates last year.

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

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.

Rising cases and vaccine issues caused bond yields to fall, but inflationary pressures will likely reverse that course.

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

With independent title companies scoring the largest market share gain last year, the sector saw a 22% increase in premiums overall, the American Land Title Association said.

The shift ended a long run of higher rates that have depressed loan application activity, and it temporarily creates a new refinancing incentive for some borrowers.

Mortgage rates that are rising in tandem with a recovering economy dampened borrower activity, even with prime homebuying season underway.

After two straight months on an upward trajectory, rising interest rates pushed homebuyer demand down to a third of where it stood at the start of 2021, according to Freddie Mac.

While there were fewer new mortgages sought on a week-to-week basis, the index was higher than it has been during the same week in the last two years.

Point of sales providers are bringing improvements to their systems as loan officers look for ways to keep their pipelines active.

But the 10-year Treasury yield began backing down after the weekend as investors reacted to turmoil in Europe.

Despite a 3% increase in new mortgages, overall applications dropped 2% on a consecutive-week basis due to a 5% decline in refis, according to the Mortgage Bankers Association.

While the economic recovery and stimulus checks drove upward movement in purchases, it wasn’t enough to offset tumbling refinance activity.

As more borrowers between 21 and 40 leveraged the historically low mortgage rates in January, the average age rose to a report high, according to ICE Mortgage Technology.