Originations

May's falling interest rates as well as ongoing wage growth helped improve home affordability across borrowing segments and racial groups, the Mortgage Bankers Association said.

A gauge of contract signings from the National Association of Realtors decreased 2.1% to 70.8 last month, the lowest reading in data going back to 2001, the group said Thursday.

But economists seem to differ on what the latest movement in mortgage rates means for the summer home sales business.

Across the country over the past two years, the share of homes affordable to a first-time home buyer has fallen to 29% from 34% in 1Q23 and 45% in 1Q22, First American Financial said.

Almost two-thirds of those aged 55 or over said they are sentimental about the house they have occupied long-term.

Borrowers in the government-purchase market returned to the table in greater numbers, as rates declined, the Mortgage Bankers Association said.

A tough mortgage market has pushed some lenders to shed their middle management as a way to cut costs. This has ignited debate around what value regional and divisional managers bring to the table.

The increase in total home sales will be slower than prior projections and that should lead to less growth in purchase originations, Fannie Mae's June forecast said.

The overall critical defect rate trickled down to 1.53% in the fourth quarter of last year, according to Aces Quality Management.

Title insurers did nearly $3.4 billion in premiums during the first quarter, similar to 2023, even though mortgage dollar origination volume was up over 13%.