Mortgage application volume rises to the highest level in 6 weeks

Hi, and welcome back to Mortgage Nuggets. Today’s newsletter is 542 words, a 2.5-minute read. Let’s dive in…

1. Mortgage application volume rises to the highest level in 6 weeks

According to the Mortgage Bankers Association, mortgage activity picked up for a third straight week, with notable growth observed among first-time buyers.

The MBA's Market Composite Index, a measure of weekly application volumes based on surveys of trade group members, shows total home loan applications increased by 3% for the week ending Nov. 17, compared to the previous week.

The latest increase comes after similar rises of 2.8% and 2.5% earlier this month. Despite the recent upswing, applications still were 16.3% lower compared to the same week in 2022.

"Mortgage applications increased to their highest level in six weeks, but remain at very low levels," said Joel Kan, MBA vice president and deputy chief economist, in a press release.

2. Mortgage delinquency rate decreased in October

The national delinquency rate fell 3 basis points (bps) to 3.26% in October, marking a 9 bps (-2.8%) improvement from the same time last year, according to the ICE Mortgage Monitor report.

• Serious delinquencies (90+ days past due) fell to 447,000, once again hitting their lowest levels since 2006.

• Loans 30 days late also declined, marking the first such improvement in five months.

Despite the improvement in delinquencies, foreclosure starts rose to 33,000 in October, hitting their highest levels in 18 months – while the number of foreclosure sales (completions) remained relatively flat

• Active foreclosure inventory inched up 3,000 to 217,000, but remains more than 25% below pre-pandemic levels

• While foreclosure starts rose in October, near term risk remains muted, with serious delinquencies historically low and more than 70% of such loans protected from foreclosure by loss mitigation efforts

3. Catch up quick

⏳ Washington quietly scrapped a plan to save homeowners thousands of dollars. (WSJ)

🧑‍💻 Fidelity National Financial is the latest victim of a cybersecurity attack, leading to system shutdowns impacting title insurance and mortgage transaction services. (SC)

💰 Figure Technologies targets $2-3 billion IPO for lending arm LendCo. (Bloomberg)

4. Redfin: Over 3% of homes are selling at a loss

A recent Redfin report highlighted by Axios shows a growing trend of U.S. homeowners selling their houses at a loss.

Between August and October 2023, over 3% of home sales were at a loss, an increase from 2.4% in the previous year, with the median loss being around $40,000.

• San Francisco recorded the most significant impact, where approximately 14% of sales were at a loss, with a median loss of $122,500.

• Other cities with notable losses include Detroit, Chicago, Cleveland, and New York, each experiencing over 6% of sales at a loss.

In contrast, some markets have even been stronger for sellers this year. The proportion of losses in D.C., for instance, has shrunk since last year. Losses were least common in Providence, Rhode Island; Anaheim, California; San Diego, Boston and Fort Lauderdale, Florida.

5. Interactive: Where building still booms

The Census Bureau survey reaches out to about 8,400 local jurisdictions every month to ask how many housing units they’ve authorized, how much they’re worth, and whether they’re for single or multifamily units.

Below is a complete picture of where new homes soon will be built. Click here for more details and the ability to hover and see more granular data.

☀️ See you on Wednesday!

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