News You Can Use – November 2022 Edition

AD Market Digest – 11/7/22

AD Market Digest – 11/14/22

AD Market Digest – 11/21/22

Market News

• NMN—Rent Prices Experience Second Month Over Month Decline.“In 2022 rents are up by a total of 5.9%, compared to 18% at this point in 2021. Rent prices have dipped nationally for two straight months, falling 0.7% during the month of October. It also marks the largest single-month dip in the history of the index, going back to 2017. The national rent index is down by 1.1% since August. Despite the monthly decline, rent growth over the course of this year continues to outpace the pre-pandemic trend, even as it has slowed significantly from last year’s peaks. So far in 2022 rents are up by a total of 5.9%, compared to 18% at this point in 2021.”
• FHFA — FHFA Announcement on Credit Score Models. “On October 24, 2022, the Federal Housing Finance Agency (FHFA) announced the validation and approval of both the FICO 10T and the VantageScore 4.0 credit score models for use by Fannie Mae and Freddie Mac (the Enterprises). After a multiyear transition period, lenders will be required to deliver loans with both scores when available. Currently, the Enterprises use Classic FICO, a model that they have required for nearly 20 years. In 2014, FHFA and the Enterprises began an effort to modernize the Enterprises’ credit score model requirements, and in 2018, Congress required FHFA to create a process for validating and approving credit score models. The validation and approval of FICO 10T and VantageScore 4.0 is the result of a long effort by FHFA and the Enterprises to further support accuracy, innovation, and inclusion in credit score models used by the Enterprises.”
• DSNEWS — Vacant Homes in Foreclosure Record Third Consecutive Quarterly Increase. “ATTOM has released its fourth-quarter 2022 Vacant Property and Zombie Foreclosure Report showing that 1.3 million—an estimated 1,264,241— residential properties in the United States sit vacant. That figure represents 1.26%—or one in 79 homes—across the nation. The report also reveals that 284,423 residential properties in the U.S. are in the process of foreclosure in Q4 of this year, up 5.2% from Q3 of 2022, and up 27.4% from Q4 of 2021. A growing number of homeowners have faced potential foreclosure since a nationwide government moratorium on lenders pursuing delinquent homeowners, imposed after the Coronavirus pandemic hit in 2020, was lifted at the end of July 2021.”
• MCT—Lock Volume Indices: October 2022 Data. “Lock Volume Indices show that year-over-year total lock volume (-60.4 percent) continues to drop, as expected, when compared to the white-hot origination space in 2021. The month-over-month rate/term refinance lock figure and purchase index, those figures were down 28.9 percent and 15.8 percent, respectively. Total mortgage rate locks by dollar volume decreased 17.1 percent month-over-month in October. Cash out refinances are down 27.6 percent month-over-month and from one year ago volume is down 87.2 percent, while rate/term refinance volume has dropped 93.2 percent from 2021.”
• NMP – Where to Find the Best Technology. “Mortgage technology will continue to grow and innovate the industry, so lenders must understand all the options available. While conferences and summits are great places to connect, exceptional web listing services are dedicated to helping mortgage professionals find the right tech solution to grow their business. Investing in technology is challenging, but there is no reason not to consider many options until you find the right fit. “
• Mortgage Banker – Leaning In to Grow Through a Downturn. “Whether it’s building stronger teams by picking up experienced professionals competitors let go, building stronger, more versatile tech stacks for originating any type of loan through any channel, or outsourcing their fulfillment and focusing on sales, leaders see the opportunity in the current market. “

• MPA – Mortgage applications increase following brief pause in rate hikes. “Mortgage applications went up for the week ending November 11, with the Mortgage Bankers Association’s (MBA) weekly mortgage applications survey reporting a 3.8% increase in volume levels.”
• MBA — Mortgage Credit Availability Decreased in October. “Mortgage credit availability decreased in October according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology.​ The MCAI fell by 0.5 percent to 102.0 in October. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012. The Conventional MCAI decreased 1.5 percent, while the Government MCAI increased by 0.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 2.5 percent, and the Conforming MCAI remained unchanged.​”
• MND — Construction Costs, Buyer Traffic Continue to Sap Builder Confidence. “The NAHB/Wells Fargo Housing Market Index (HMI) is a monthly sentiment survey of members of the National Association of Home Builders (NAHB). The HMI is a weighted average of three component indices: current single-family sales, the outlook for sales over the next six months, and traffic of prospective buyers. ​HMI fell another 5 points in November. NAHB said this measure of builder confidence in the new home market is now at 33 after 11 straight months of decline. All three HMI components posted declines in November. Current sales conditions fell 6 points to 39, sales expectations in the next six months declined 4 points to 31 and traffic of prospective buyers fell 5 points to 20.​”
• MBA — Mortgage Application Payments Rise 3.7 Percent to $2,012 in October. “Homebuyer affordability continued its downward trajectory in October, as the national median payment applied for by applicants increased 3.7 percent to $2,012 from $1,941 in September. This is according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).The national PAPI increased 2.7 percent to 167.9 in October from 163.6 in September. An increase in MBA’s PAPI – indicative of declining borrower affordability conditions – means that the mortgage payment to income ratio (PIR) is higher due to increasing application loan amounts, rising mortgage rates, or a decrease in earnings.”
• MBA — Share of Mortgage Loans in Forbearance Increases Slightly to 0.70% in October. “The Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance increased by 1 basis point from 0.69% of servicers’ portfolio volume in the prior month to 0.70% as of October 31, 2022. According to MBA’s estimate, 350,000 homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance increased 1 basis point to 0.31%. Ginnie Mae loans in forbearance increased 8 basis points to 1.41%, and the forbearance share for portfolio loans and private-label securities (PLS) declined 11 basis points to 1.03%.”