Originations

The Federal Reserve held interest rates steady for a third meeting and gave its clearest signal yet that its aggressive hiking campaign is finished by forecasting a series of cuts next year.

The Department of Housing and Urban Development proposal, which would modernize client meetings necessary for some mortgages, is similar to an FHA move.

Falling interest rates are behind a recent spike in government-backed lending as well as refinances, according to the Mortgage Bankers Association.

Decreasing availability of jumbo and non-QM products accounted for most of November's pullback, as other types of loan offerings saw minimal changes, the Mortgage Bankers Association said.

With a great deal of mortgage industry conversation revolving around how companies might best survive the current downturn, a theme has emerged around the value of offering more, even if the market expects to originate less.

But despite the pullbacks in home values this fall, a panel of economists anticipate they will rise over the next year.

Over half of mortgage professionals in an upcoming Arizent survey suggest severe weather events will disrupt the housing market next year.

While home lending employment fell, a stronger-than-expected report on the broader labor market immediately raised concerns about the potential for higher interest rates.

Mortgage shop Newrez has entered into at least 22 partnerships with real estate brokerages.

Recent economic data pushed investors toward Treasurys over the past week, driving 10-year yields to as low as 4.1%.

Procedural limits on condo originations aimed at preventing issues like the Surfside building collapse have frustrated lenders, who will see if this helps.

Heightened government-backed activity also helped bring the average loan size down to its lowest mark in 2023, with purchase amounts falling below $400,000 for the first time since January, the Mortgage Bankers Association found.

Brokerage giants, reeling from a billion-dollar judgment against them a month ago, face another major trial next year.

The top five lenders have an average mortgage origination volume of more than $8.8 billion.

But the average cost for a mobile home is still more than $300,000 lower than a permanent construction.

While Fitch and CoreLogic predict home prices will rise next year, Redfin is forecasting a 1% drop in the second and third quarters.

Only 62% of likely purchasers surveyed in October were waiting to act in expectations of declines, down from 85% in April.

The number of government-backed home loans transferred from one borrower to another is up significantly this year as prospective buyers look for ways to avoid elevated interest rates. Some say this is the beginning of a larger movement, but others say regulatory hurdles will get in the way.