A broker-owner out in Northern California told me that refi volume for his LOs was down about 25-30% in the last two months.
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Hello, LOs!
I remember back in the halcyon days of...January, when economists and mortgage industry observers said rates were going to be well over 3% by now. Several told me they predicted about 3.5% by the end of the end of the second quarter. It could still happen, but right now it looks like rates will hover around the 3% mark for at least a few more weeks (especially given the dismal jobs report).
Which brings me to today's topic – refis. A broker-owner out in Northern California told me that refi volume for his LOs was down about 25-30% in the last two months. A retail LO in Clearwater, Florida, told me her refi business is also down, but only slightly. And up here in Long Island, refis have tapered off marginally, but some clients who thought they'd missed the window have locked their rate after a few targeted email blasts, one LO said. Others have also reported a resurgence from the recent weeks of sub-3% rates.
The publicly traded mortgage companies have similarly shown mixed results in terms of originations in Q1. Rocket Mortgage's overall volume fell, as did loanDepot's. While Rocket doesn't break out how much purchase volume it does vs. refi volume, LD does. The lender originated $8 billion in purchase loans in Q1 and $33.6 billion in refis. They actually did more refi business and less purchase business than they had in Q4.
Homepoint is another interesting case. In fact, 80% of the wholesale lender's originations in Q1 were refis, way higher than the 71% originated in Q4.
So, LOs, fill me in: how is the refi market in your area right now? Fading? A recent uptick with rates? Never really dropped? And what are you doing to try and convince clients who would benefit from a 50 bps rate shave or better? You can reach me anonymously at jkleimann@housingwire.com.
In tomorrow's LL edition, we'll look at UWM's earnings report (it will be out shortly after the close of trading on the NYSE today). And if you haven't already, make sure to check out Georgia Kromrei's deep dive into the CFPB's handling of the QM rules and the top agency official who has said she "hates" them.
A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor. HW+ Premium Content
Join CEO Rick Soukoulis as he shows how simple it is to use the ReadyPrice Product, Pricing, & Eligibility Engine to find the best rates for your borrower. The PPE technology is free to use for individual mortgage brokers. Watch the demo!
April's U.S. jobs report on Friday was dismal at just 266,000 new jobs, but economists say they're not worried about the housing or mortgage market. HW+ Premium Content
We're a year into the pandemic, and while smart policy has delayed a default wave, the threat still looms large. Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators. Presented by Sagent Lending Technologies
Fannie Mae's Home Purchase Sentiment Index decreased by 2.7 points to 79 in April 2021 after four of the survey's six components decreased month over month.
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