As the housing market heats up, non-bank lending is taking over the mortgage market. Now regulators are raising red flags. CNBC's Diana Olick joins "Squawk Box" from a major housing conference in Dallas, where that is one of the topics on the agenda. Mortgage lenders were busy last week, but mostly with current homeowners looking to take advantage of low mortgage rates. Total mortgage application volume increased 1.1% compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
Refinance demand drove the volume, rising 5% for the week and a remarkable 207% compared with the same week one year ago. Mortgage rates began falling about a month ago, as fears of the coronavirus hit financial markets. Mortgage rates loosely follow the yield of the 10-year Treasury. Rates are hovering around a three-year low, sparking an unexpected refinance boom.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 3.72% from 3.71%, with points remaining unchanged at 0.28 (including the origination fee) for loans with a 20% down payment.
“The mortgage market continues to be active in early 2020, as applications increased for the third straight week. Rates also rose, but still remained close to their lowest levels since October 2016,” said Joel Kan, an MBA economist. “The refinance index climbed to its highest level since June 2013, and refinance loan sizes also increased as a result of an active jumbo lending market.”Real estate investment, mortgage, housing market, homes, homebuilding
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