The Bifurcation of Refinance and Purchase Rates
Published October 13, 2020
Historically, there has been little to no difference in refinance and purchase rates. A borrower looking to do a rate-term refinance on a primary residence would typically be offered the same rate as they would for a purchase loan on the same [...]
Great News!...? FHA Will Start Taking Loans in Forbearance, but Not All of the Risk
Published June 15, 2020
Loans that were originated according to FHA guidelines – that went into forbearance before they were able to be move them over to FHA – are now able to be insured by the FHA. There are, of course, some restrictions and stipulations that are associated [...]
Time to Start Thinking About Getting Conventional Loans Out of Forbearance
Published May 29, 2020
As we head into June, it feels like the eye of the storm in the mortgage industry. Forbearances are still increasing but at a greatly diminished rate, rates are still low, volume is still high, many states have begun to reopen, and the secondary market has [...]
COVID-19 Forbearance Issues & Cash-out Considerations
Published April 24, 2020
As you are likely aware, the prospect of borrowers becoming unemployed as a result of COVID-19 shutdowns has become a reality, but the depth of that part of this crisis has yet to be determined. Thus, the threat of loans entering forbearance is a major [...]
Mortgage Volumes Still Strong Despite Economic Uncertainty
Published April 23, 2020
During these unprecedented times, we are all trying to stay safe and healthy. Among other measures, this means a lot of social distancing and time spent in your current place of residence. The purchase market is slowing as both supply and demand are [...]
Market Commentary: Rates Are Falling, Will It Continue?
With the 10-year treasury yield at 2% again, and the Federal Funds Rate (FFR) at 2.5%, it is natural for the rational mind to assume that this cannot go on for much longer. During normal market conditions, the treasury curve slopes upward; typically, short-term treasuries yield [...]
Market Commentary: The Impact of Low Rates on Lender Profitability
Consider the direct impact of our recent favorable rate trend on lender profitability. In the paragraphs below, we examine how lower mortgage rates can equate to higher margins for lenders as seen through the primary-secondary spread.
Market Commentary: Monetary Policy Impact on the Mortgage Market
U.S. monetary policy is the purview of the Federal Reserve (Fed) and is broadly responsible for the health and stability of the economy. The Federal Reserve Open Market Committee (FOMC) is the group that decides the monetary policy that the Fed will implement in order to fulfill [...]
Market Commentary: Rates Falling, Are Volumes Responding?
Optimal Blue recently released a suite of indices known as the Optimal Blue Mortgage Market Indices (OBMMI™). These indices are calculated from actual locked rates with consumers across more than 30% of all mortgage transactions nationwide and are developed around the most [...]