Originations

Approximately two years after Fannie Mae and Freddie Mac stopped accepting the troubled index, the government agency is looking to approve the Structured Overnight Financing Rate for adjustable rate mortgages.

Higher interest rates are driving borrowers to adjustable-rate loans, which saw close to a 13% share in weekly activity, the highest since 2008.

New U.S. home construction declined in September and permit applications for single-family dwellings fell, adding to evidence that the highest mortgage rates in two decades are sapping demand and discouraging new builds.

The new product will be based on a recent revision to the Department of Veterans Affairs' handbook for lenders, according to the company.

The agency is currently using upper ceilings set in the Housing and Economic Recovery Act of 2008.

Urban Institute research backed by the Federal Home Loan Bank of San Francisco suggests using rent and utility reporting for this purpose is complicated but has a net benefit.

The development, touted as an industry-first, is the latest move by the government-sponsored enterprises to expand housing opportunities for first-time and underserved homebuyers.

New-home mortgage applications fell 13.2% on an annual basis, while average purchase sizes declined for the fifth straight month.

Quarterly numbers also show the smallest gain in appreciation since 2011, with values decreasing on an unadjusted basis, according to Fannie Mae.

The Detroit-based lender said the program will "accelerate loan purchases" and "eliminate significant costs" for its partners