Interest rates on mortgages are elevated, suppressing demand. Short periods of declines in interest rates have prompted surges in loan applications. The question remains: When will interest rates do down?
Ongoing affordability issues and volatility in the financial markets combined to suppress purchase-mortgage lending in the first quarter. Meanwhile, refi volume was up nearly 50% from a year ago. (Includes four data tables.)
Correspondent sales of jumbo mortgages originated in 2024 increased by more than 60% on an annual basis. The largest sellers were almost all nonbanks, though Chase cracked the top 5 with its deliveries into non-agency MBS. (Includes data table.)
Federal agencies have used the higher-priced mortgage designation as a proxy for subprime lending. Strategies vary among the biggest originators of higher-priced mortgages, including focusing on loans for manufactured homes or expanded-credit mortgages. (Includes two data tables.)
United Wholesale Mortgage plans to continue to grow organically, making investments in technology. The nonbank took a large loss in the first quarter as values of mortgage servicing rights declined.
Amerant Bank launched national mortgage operations in 2021. Now, the bank is reducing its footprint, focusing on lending in Florida where its bank branches are located.
Residential lending increased by 10.9% compared with the first quarter of 2024. Interest rates on mortgages jumped this month, hampering production early in the second quarter. (Includes two data tables.)
Demand from borrowers increases when mortgage rates fall below 6.5%, according to Owen Lee, CEO of Success Mortgage Partners. Due to policies from the Trump administration, it’s unclear whether rates will decline to that level in the near term.
Nonbanks accounted for 65.2% of the residential mortgages originated in 2024. All of the top five lenders were nonbanks and they all gained market share. (Includes two data tables.)
The spring homebuying season might not be as strong as initially expected. Interest rates are challenging and employment trends are faltering, reducing demand for purchase mortgages.