Daily Dose

Refinances fell in February as mortgage rates rose, according to the Federal Housing Finance Agency’s (FHFA) February 2017 Refinance report. The average interest rate on a 30-year fixed rate mortgage in February 2017 was 4.17 percent, up from January 2017’s 4.15 percent.

A new survey reveals that consumers are most concerned about closing costs and interest rates when choosing a lender to work with. Service and convenience followed closely behind as top influencing factors. Only 37 percent of those surveyed said they were satisfied with the mortgage application process.

The first quarter was a mixed bag for Wells Fargo, JPMorgan Chase, and PNC. All three bank’s latest earning reports reveal lower gains on residential mortgage servicing rights and lower mortgage loan revenues, but the banks are optimistic going into the 2017. Overall earnings for JPMorgan Chase and Wells Fargo were down slightly from the previous quarter.

Independent mortgage bankers profits are up, according to the Annual Mortgage Bankers Performance Report. Independent mortgage banks and mortgage subsidiaries of chartered banks made an average of $157 more on average per loan originated in 2016 compared to 2015. The report also found that average production volume was $2,679 million per company, another increase from 2016’s $2,504 million per company.

According to new rankings, Tampa, Florida, has the best single-family housing market in the country. Dallas; Las Vegas; Columbus, Ohio; and Jacksonville, Florida also made the top five. All had strong demand, home price appreciation, and economic growth.

Down payments are holding back renters from entering the housing market. Mortgage payments tend to be considerably cheaper than a rent payment on a monthly basis, but Zillow’s Housing Aspirations Report found that 70 percent of renters across the country are find high down payment costs to be the top roadblock to homeownership.

Financial Services Committee Chairman Jeb Hensarling still finds fault in the CFPB’s structure, and in Cordray’s leadership. According to Hensarling, Cordray “recklessly ignores the due process protections that have been deeply rooted in our American legal system for centuries." Hensarling hopes the Bureau will become the "cop on the beat" its supporters want.

A new study by Trulia shows that while doctors can still afford most markets, teachers, first responders, and restaurant workers are getting increasingly shut out of markets where they work. Availability for solid, even above-median earners in coastal California is especially low. However, even there, some pockets of affordability exist.

When first-time homebuyers make the jump from renting to homeowning, they have to ask “is it affordable?” For the most part, that answer is yes. Many first-time homebuyers, particularly millennials, have found that owning a home has a more positive impact on their finances than renting.

The second annual Lenders One Mortgage Barometer indicates favorable conditions ahead. First-time buyers, Generation X and millennials are expected to drive demand for mortgages, while lenders are advised to stay creative to meet economic demand drivers. About three in five surveyed lenders anticipate an increase in new homeowners entering the market