Tag Archives: Refinance

Ellie Mae released its most recent Origination Insight Report Wednesday, revealing that July├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós closing rate for all loan applications fell from June├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós total. The report draws data from a sampling of loan applications that go through Ellie Mae├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós network and mortgage management software. To get a meaningful view of lender ├â┬ó├óÔÇÜ┬¼├àÔÇ£pull-through,├â┬ó├óÔÇÜ┬¼├é┬Ø the company reviewed a sample of applications initiated in April to come up with a closing rate for July. Ellie Mae found that 45.8 percent of all applications closed in July.

For borrowers who refinanced in the second quarter, fixed-rate mortgages dominated consumer preferences. Among those who refinanced in Q2, more than 95 percent opted for a fixed-rate mortgage, according to the Freddie Mac Quarterly Product Transition report. For those who had a hybrid ARM, 81 percent transitioned into a fixed-rate loan during the second quarter; the percentage represents the highest share in two years. In contrast, for those with a 15-year fixed rate loan, 2 percent transitioned into a hybrid ARM.

Strong employment reports boosted mortgage rates back up for the second week in a row, Freddie Mac reported Thursday. The GSE's Primary Mortgage Market Survey shows the 30-year fixed averaging 3.59 percent for the week ending August 9, an increase from 3.55 percent the previous week. The 15-year fixed also posted gains, averaging 2.84 percent for the week, up from 2.83 percent a week ago. The 5-year adjustable-rate mortgage followed, increasing to 2.77 percent from 2.75 percent the week before.

HARP-assisted refinances drove record refinance activity in the month of June, FHFA revealed Tuesday. The agency released its Refinance Report for June 2012, showing that refinance volume remained strong in June as mortgage rates fell to all-time lows. An estimated 33 percent of refinance volume was done through HARP, the highest percentage since HARP's inception. The report revealed that at the end of June, Freddie Mac and Fannie Mae had refinanced 422,969 loans through HARP in 2012, more than in 2011.

Though the skies above the housing market appear to be clearing, the July edition of the Obama administration├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Housing Scorecard warns of another storm to come. HUD and Treasury Department released the latest scorecard Friday, providing a look at a market in recovery but threatened by an expected increase in foreclosure activity. According to the report, foreclosure starts and completions both declined in June, painting a picture of continued recovery. However, officials expect foreclosure activity to pick up in coming months as firms lift delays in foreclosure processing.

Freddie Mac released the results of its second quarter refinance analysis Wednesday, revealing that homeowners who refinance continue to strengthen their housing situations. Freddie Mac's report showed that 81 percent of homeowners who refinanced their first-lien home mortgage either maintained the same loan amount or lowered their principal balance in the year's second quarter. Of these borrowers, 59 percent maintained about the same loan amount (the highest share ever recorded), while 23 percent reduced their principal balance.

Mortgage applications went up 0.2 percent last week as refinance volume rallied at levels not seen for the past several years. The Mortgage Bankers Association found the refinance share of mortgage activity ticking up to 81 percent of total application volume, the highest since January this year, while the Refinance Index climbed 0.8 percent to its highest level since April 2009. The increase in refinance activity also saw a 6 percent decline in government refinance applications. The adjustable-rate mortgage share of activity declined to 4.1 percent of total volume.

Freddie Mac announced Tuesday its plans to expand on its Relief Refinance Mortgage Program by aligning separate mortgage requirements. The GSE announced that it will align requirements for mortgages with loan-to-value ratios that are equal to or less than 80 percent with those for mortgages with LTV ratios greater than 80 percent. The alignment is expected to eliminate many of the lender├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós selling representation and warranty responsibilities on loans being refinanced. Details are scheduled to be announced to lenders by mid-September.

More applications ticked up as record-low mortgage rates spurred refinance applications to their highest level since April 2009. The Mortgage Bankers Association found that applications increased 0.9 percent from the week before. The Refinance Index climbed by 2 percent to reach the highest level in three years, with the refinance share of activity ticking up to 81 percent of application volume from 80 percent last week. The adjustable-rate mortgage share of activity amounted to 4 percent of total volume from the week before.

Increased home sales continue to help the United States out of its Great Recession, but uneven job growth is stunting recovery, according to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós U.S. Economic and Housing Market Outlook for July. The report, released Wednesday, showed that record-breaking low mortgage rates and refinances through HARP 2.0 drove up housing demand, leading to increases in housing starts, home sales, and prices in many markets. Housing starts for the first five months of the year averaged an annual rate of 719,000, a 26 percent increase from the same period in 2011.