Mortgage News and Lower Interest Rates
I appreciate your interest in mortgage lending. We have some news and forecasts for the mortgage industry. Please find below the latest updates and insights on mortgage lending.
Staying up-to-date with the latest mortgage updates is important. You can also take advantage of lower interest rates if needed. Whether you’re a first-time homebuyer, a current homeowner looking to refinance, or simply interested in the mortgage lending industry, we’ve got some information for you.
Current State of Mortgage Lending
The latest trends and news for mortgage lending are:
- Third-party technology and data providers are streamlining more parts of the mortgage process, such as origination, underwriting, servicing, and closing.1
- Nonbank lenders continue to grow their market share, especially in the government-backed and non-qualified mortgage segments.1
- Next-generation sub-servicers are introducing more efficient digital platforms that reduce costs and improve customer experience.1
- Companies are bundling home-buying services, including mortgages, to offer a one-stop shop for consumers.1
- Non-qualified mortgage lenders are reentering the market, offering more flexible products and pricing to borrowers who do not meet the conventional criteria.1
Mortgage Interest Rates Now
Mortgage rates declined for the third consecutive week in late March, sparking hope for a good homebuyers’ spring season. However, low inventory remains a key challenge for prospective buyers2
The 2023 housing market bent but didn’t break, despite the pandemic, the economic recession, and the bank collapses. Experts predict 2024 will be a year of recovery and stabilization for the mortgage industry.
According to Bankrate, the current average interest rate for the benchmark 30-year fixed mortgage is 7.01%, falling 17 basis points from a week ago. The current average interest rate for a 30-year fixed refinance is 7.20%, decreasing 1 basis point compared to this time last week.1
Mortgage Applications
Mortgage applications and approvals depend on various factors. Those factors include the type of loan, the borrower’s credit profile, the lender’s underwriting process, and the market conditions.
According to the Mortgage Bankers Association, the total mortgage application volume increased by 3.8% in the week ending Dec. 17, 2023, compared to the previous week.
The refinance index rose by 7%, while the purchase index fell by 1%. The refinance share of mortgage activity was 67.8% of total applications, the highest level since May 20201
The mortgage approval rate is the percentage of applications that are approved by lenders. The approval rate can vary widely by lender, loan type, and borrower characteristics.
Mortgage Lending Projections for 2024
Mortgage lending projections for 2024 are based on various factors, such as the economic outlook, the Federal Reserve’s monetary policy, the housing supply and demand, and consumer preferences.
According to some experts, mortgage rates are expected to decline in 2024, as the Fed may cut its benchmark interest rate to stimulate the economy and ease inflation pressures.
This could increase the refinance activity and make home-buying more affordable for some borrowers. However, mortgage rates will remain high compared to historical levels, and the housing market will face challenges such as low inventory, high prices, and tight credit standards. Mortgage lending volume may also depend on the availability and attractiveness of alternative products, such as non-qualified mortgages, which cater to borrowers who do not meet the conventional criteria123
Summary:
As you know mortgage lending changes almost daily and sometimes within minutes. It is ever-revolving with changes from rates, to underwriting guidelines, approvals, and dos and don’ts in the industry.
We have given you “some” of the latest changes. This post is all about the news-not approval guidelines. We will get to that in a later post.
Additional Reading- First-Time Homebuyer Loans– Mortgages Pre-Approval
EndNotes: As you can see we include on this site Mortgage Daily Trend Rates-and Today the trend is as shown in our widget @ 6.61% for a 30-year fixed rate.
2: Data Point: 2022 Mortgage Market Activity and Trends | Consumer Financial Protection Bureau 3: Mortgage News Delivered Daily from HousingWire 1: Five trends reshaping the US home mortgage industry | McKinsey
Mortgage Applications and Approvals- AOL Finance,¹Mortgage News Daily-²- msn.com ¹ cnet.com ² – housingwire.com³
