The flow of refis into agency MBS nearly halved during the third quarter. Purchase-mortgage volume was up 12.5% on a sequential basis; but over the first nine months, it was up only 1.3% year over year. (Includes two data tables.)
Large lenders are flocking to deploy VantageScore 4.0, but others are being more cautious due to shifting GSE guidelines. There’s also uncertainty for investors in MBS and MSRs.
The sharp decline in home price appreciation makes it possible that lenders’ early-bird loan limits for 2027 will come in above the 2026 conforming loan limits.
Home equity lending is being fueled by accumulation of equity and elevated interest rates, which have diminished demand for refis. (Includes three data tables.)
Critics argue that applying the same LLPA pricing grids to VS4 and Classic FICO will camouflage, but not eliminate, the added credit risk associated with the typically higher VS4 score.