Mortgage rates to stay high through end of 2023: First American
National Mortgage News
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Those in the mortgage business hoping that the spread between the 10-year Treasury and 30-year fixed loan are on their way to normalizing — leading to lower rates — could be waiting a while longer, First American Financial said. For quite some time, the spread has been in the area of 300 basis points, versus the 170 basis points commonly seen since the end of the Great Recession, noted Odeta Kushi, deputy chief economist, in a commentary. Many industry economists expect those spreads to narrow by the end of 2023, with mortgage rates coming down accordingly.
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Mr. Cooper is putting itself in position to absorb some mortgage business from depositories, anticipating that they'll stage a further retreat from housing finance due to proposed tightening of bank capital rules and other negative market trends. The capital rule, which adds larger risk weightings for portfolio products with high loan-to-value ratios and mortgage servicing rights, could drive more sales of the latter, which Mr. Cooper may absorb. Banks also may look to the company to handle other housing finance operations given thin margins in the business, Vice President and President Chris Marshall said Tuesday.
The rate of distressed commercial real estate loans trended upward over the past year, according to two new industry reports, although sizable differences in performance appear when looking at markets, building types or funding sources. Researchers at Kroll Bond Rating Agency reported distressed loans within private-label commercial-backed mortgage securities climbed up to 6.8%, or $40.7 billion, by the end of August 2023, up from 4.5% at the close of second quarter 2022. The surge represents a net increase of $13.4 billion in delinquencies or specially serviced volumes among CMBS deals issued since 2010.
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As rates headed higher, mortgage application volumes inched downward over Labor Day week, but buying activity saw a rebound from long-time lows, according to the Mortgage Bankers Association. The MBA's Market Composite Index declined for the second straight week, down a seasonally adjusted 0.8% for the seven-day period ending Sept. 8. A week earlier, activity had dipped 2.9% to a 27-year low, while on a year-over-year basis, numbers were 28.6% lower. "Mortgage applications decreased for the seventh time in eight weeks, reaching the lowest level since 1996, said Joel Kan, MBA vice president and deputy chief economist.
The top five lenders in the ranking have an average total origination volume of more than $7 billion as of the end of the second quarter of 2023. Most lenders saw an increase in volume between Q1 and Q2, with one logging a rise of 94.81%. Read on through to see which residential lenders are in the top 20 and how they fared through the end of June 2023.
The banking industry and its allies are ramping up their efforts to combat federal regulators' push to increase capital requirements on banks with at least $100 billion of assets. Initially opting for a passive approach focused on research papers and a website dedicated to sussing out the "price tag" of higher capital requirements, bankers and bank lobbyists are taking the fight to regulators more directly through advertising campaigns and procedural challenges.
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Realtor Associate @ Next Trend Realty LLC | HAR REALTOR, IRS Tax Preparer
1yThanks for the updates on, The NMN.