Mortgage applications slide 3.1%

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1. Mortgage applications slide 3.1%, FHA rate hits 21-year high

Mortgage applications have decreased by 3.1% from one week earlier, according to the latest data from the Mortgage Bankers Association.

• MBA’s Economist, Joel Kan, said that the decrease is attributed mainly to rising Treasury yields, influenced by the Treasury's funding announcement and the downgrading of U.S. government debt rating.

Rates increased across the board, with the 30-year fixed mortgage rate reaching 7.09%, its highest level since November 2022, and the rate for FHA mortgages hitting 7.02%, a rate unseen since 2002.

The refinance share of mortgage activity decreased slightly to 28.7% of total applications, while the adjustable-rate mortgage (ARM) share of activity inched up to 6.9%.

Government loan applications saw mixed reactions, with the FHA and VA share of total applications increasing to 13.6 and 11.8%, respectively, while the USDA share dropped to 0.4% from 0.7%. LINK

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2. More Nuggets

📈 UWM posts $229M Q2 profit as spring mortgage originations soar. (DFP)

💸 The delinquency rate of mortgage loans on 1-4 unit residential properties fell to 3.37% at the end of Q2. This is the lowest delinquency rate since the survey began in 1979. (MBA)

📊 Here are five key takeaways from the US CPI report for July. (Bloomberg)

🏙️ New York magazine devoted an issue to the plight of NYC office space. Friday is dead, anything below class A might be dead, and that's a lot of debt to write off...(NYTimes)

🏛️ FHA introduces new functionality to streamline case cancellations and reinstatement. (FHA)

3. Wells Fargo providing $10K in down payment assistance

Wells Fargo rolled out a down payment grant program that will offer $10,000 to eligible buyers or homeowners who currently live in or are purchasing homes in underserved communities in eight metropolitan areas.

The Homebuyer Access grant program is available to those who have a combined 120% or less of the area median income (AMI). The grant funds can only be used toward the down payment on a Wells Fargo fixed-rate conventional loan secured by a property that will be the purchaser’s primary residence.

• The property must be located in the following metropolitan areas: Minneapolis–St. Paul–Bloomington, MN-WI; Philadelphia–Camden–Wilmington, PA-NJ-MD-DE; Dallas–Ft. Worth–Arlington, TX; Washington–Arlington–Alexandria, DC-VA-MD-WV; Baltimore–Columbia–Towson, MD; Atlanta–Sandy Springs–Alpharetta, GA; Charlotte–Concord–Gastonia, NC-SC; New York–Newark–Jersey City, NY-NJ-PA.

Eligible buyers can combine the bank’s grant with other programs, including — Wells Fargo’s Dream. Plan. Home. Mortgage, and/or Closing Cost Credit.

4. The markets where rents have increased the most

According to Zillow, the typical asking rent in the U.S. reached $2,062 as rents increased nationwide by 3.6%. These are the markets with the largest year-over-year rent increases. Find the full July rent report here.

1. Hartford, CT (7.0%)

2. Providence, RI (6.5%)

3. Boston, MA (6.5%)

4. Chicago, IL (6.0%)

5. St. Louis, MO (5.7%)

6. Buffalo, NY (5.7%)

7. Cincinnati, OH (5.6%)

8. Kansas City, MO (5.6%)

9. Milwaukee, WI (5.3%)

10. Louisville, KY (5.2%)

5. Foreclosure numbers fall in July

Foreclosure starts dropped for the first time in three months, although repossessions ticked up, as rising property values may be easing some difficulties facing struggling homeowners, according to a report from Attom.

• The number of overall foreclosure filings, consisting of default notices, scheduled auctions or bank repossessions, dropped to 31,877 in July, 9% below the previous month's total. The figure amounted to a rate of one in every 4,380 property units in the country with a filing, compared to one in every 3,972 in June.

☀️ See you on Monday!

Question for you: If you could only choose one, would you rather feel 25% more healthy or earn 25% more money? Here’s what other Americans choose. 

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