Shelter Six:  Mortgage Programs Continue to Come Back

July 13, 2020 by · Leave a Comment 

Service-related industries account for more than two-thirds of US economic activity, so last week’s higher-than-expected National Services Index figures seem to point to the economic recovery happening faster than expected.

Mortgage purchase applications were up a very strong 5% from the previous week and 33% from the same week a year ago.

The average purchase loan size increased to a record $365,700 as borrowers contend with limited supply and higher-priced homes.

Setting realistic expectations and deadlines is critical right now as turn-around times of lenders, appraisers, and closing attorneys are all stretched due to record volume levels.

Mortgage products continue to gradually come back as minimum credit scores drop back down, Debt Ratio ceilings creep back up, and Jumbo options expand.

According to Black Knight, forbearance figures decreased last week to 7.8% of all mortgages, which represents the smallest number of plans since April 28.

Rate Update

The Mortgage Bankers Association, Freddie Mac, and Mortgage News Daily all reported record-low rates last week.  30-year rates continue to hover around and even under 3%.

This Week

The Consumer Price Index will come out on Tuesday, Retail Sales on Thursday, and Housing Starts on Friday.