Investors will initially price for added risk due to uncertainty about the real-world viability of new trended data score models like FICO 10-T and VantageScore 4.0.
Using a single score or bi-merge increases the uncertainty in assessing borrower risk, with direct implications for loan pricing and underwriting decisions, according to a study by Andrew Davidson & Co.
Private MIs and the two major government programs provided primary coverage on $74.80 billion of refinance loans, more than double the volume in the third quarter.
The average interest rate for a 30-year fixed-rate mortgage declined by 8 basis points on a weekly basis and hit its lowest level since September 2022.
Recent inflation trends along with the strong jobs report for January “suggest the lower likelihood of a rate cut” at the next Federal Open Market Committee meeting, according to Joel Kan, a vice president and deputy chief economist at the Mortgage Bankers Association.