Skip to main content

Mortgage Apps Down, Home Value Perceptions Stable

Phil Hall
Oct 10, 2018
The homeownership rate during the third quarter was 64.4 percent, according to new data from the U.S. Census Bureau

Fewer homebuyers were searching for home loans while fewer homeowners were questioning the veracity of their home values, according to two new data reports.
 
The Mortgage Bankers Association’s (MBA) report on home loan applications for the week ending Oct. 5 found the Market Composite Index down by 1.7 percent on a seasonally adjusted basis from one week earlier, while the unadjusted index was down by two percent. Both the seasonally adjusted and unadjusted Purchase Index decreased one percent from one week, with the unadjusted index two percent higher than the same week one year ago. The Refinance Index decreased three percent from the previous week and the refinance share of mortgage activity decreased to 39 percent of total applications from 39.4 percent the previous week.
 
Among the federal programs, the FHA share of total applications increased to 10.5 percent from 10.2 percent the week prior while the VA share of total applications remained unchanged at 10 percent and the USDA share of total applications increased to 0.8 percent from 0.7 percent.
 
Separately, Quicken Loans reported that average appraisal in September was only 0.29 percent less than what owners expected, according to its latest Home Price Perception Index. This represented scant upward movement from the 0.28 percent level in August; one year ago, appraiser opinions were an average of 1.14 percent lower than homeowner expectations.
 
Quicken Loans also reported that its Home Value Index showed the average appraisal value rose 0.35 percent since the prior month, less than half of the growth rate from August. The annual increases in value was more robust, with 5.69 percent year-over-year jump in September compared to a 5.79 increase in August.
 
"A wide gap between the estimated home value and the appraised value can cause a mortgage to be reworked, or in some cases, scrapped altogether," said Bill Banfield, Quicken Loans’ Executive Vice President of Capital Markets. "All the more reason for homeowners to be realistic when their mortgage banker asks them what they think their home is worth when they start the financing process."
Separately, Quicken Loans reported that average appraisal in September was only 0.29 percent less than what owners expected, according to its latest Home Price Perception Index

 
Published
Oct 10, 2018
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021
Planet Home Lending Reports Total Origination Volume Of $6.8B In Q2 2021

Planet Home Lending's total origination volume reached $6.8 billion in Q2 2021, up 77% from $3.9 billion in Q2 2020.

Industry News
Jul 22, 2021
FHFA Ends Controversial Refinance Fee

The FHFA announced that Fannie Mae and Freddie Mac will eliminate the Adverse Market Refinance Fee for loan deliveries, starting August 1, 2021.

Analysis and Data
Jul 19, 2021