Monthly Archives: January 2016

MBA Says New Home Sales Fell in December

New home sales, according to an unofficial estimate from the Mortgage Bankers Association (MBA) declined by 5 percentin December compared to the previous month. Based on mortgage application data gathered through its monthly Builder Application Survey (BAS) MBA said sales were higher than in the previous December by 17 percent. Those estimates are not adjusted to account for seasonal variations. MBA Vice President of Research and Economics Lynn Fisher said that the survey, conducted among mortgage subsidiaries of home builders across the country, showed mixed results, with some lenders seeing steady or slightly increasing applications levels while others saw declines. When seasonally adjusted the percentages translated on an annual basis in December to sales of 480,000 units down 8.4 percent from the November pace of 524,000.  On an monthly basis MBA estimates there were 34,000 new home sales in December compared to 37,000 in November, a decrease of 8.1 percent. By product type, conventional loans composed 68.0...
Read more Comments are closed

Mortgage Rates Sideways Despite Market Weakness

Mortgage rates held mostly flat today, and that's an accomplishment!  Lenders set mortgage rates based primarily on the prices of mortgage-backed-securities (MBS), which are part of the bond market, and bonds lost quite a bit of ground today.  That would normally push mortgage rates higher, but today it did not.  What's up with that? First, understand that it's a fairly tumultuous time in financial markets at the moment.  Stocks are off to the worst start of any year--ever--and bond markets have benefited as a result.  In fact, it's not unfair to say that rates have been dragged lower against their will because apart from the heavy selling in stocks, there haven't been any other compelling reasons for 2016's stellar mortgage rate trend.  One side-effect of being dragged lower against one's will is that the movement tends to be slower than it would be if both parties were on the same page. Lenders have several incentives...
Read more Comments are closed

A Silver Lining in the Regulatory Cloud

In the midst of the Know Before You Owe or TRID rule implementation which she says "devoured the industry's bandwidth," Faith Schwartz, Corelogic's Senior Vice President, Government Affairs, finds some reasons to cheer and to buck the industry current of CFPB bashing. Writing in the company's Insights blog, Schwartz says that, while innovation has taken a backseat to compliance as the housing finance industry coped with new rules and regulations, "not all the changes that regulators have wrought have been negative.  In fact, some might be setting the stage for future innovation." It was CFPB (the Consumer Financial Protection Bureau) that delivered TRID. She said, but the ideas behind it are laudable over time, making the mortgage process more transparent and understandable.  CFPB is also one of the biggest advocates of e-closings which the mortgage industry has talked about for years but hasn't yet achieved.  Hopefully the pilot study the bureau is conducting will demonstrate their value to...
Read more Comments are closed