Mortgages

Since breaking above 7% in November, the 30-year fixed is now down nearly a full percentage point, Freddie Mac said.

Average scores remain unchanged but signs of payment stress keep emerging, with Fannie Mae's serious delinquency rate up for the first time since August 2020.

This move comes at a time when the largest HECM producer sold its operations to a rival and another filed for bankruptcy.

But several recent news developments are creating the perception that the risk of a recession is on the wane and that could end the downward pressure on rates.

But late borrower payments slightly grew in November, with 18 metro areas reporting an increase, up from six metro areas in October, CoreLogic's report found.

Mortgage prepayment rates also fell to a new low for the third consecutive month in December, according to Black Knight.

Foreclosure prevention actions overall fell for the sixth time in seven months in October, according to the FHFA.

The share of loans with suspended payments remained steady as 2022 ended, but that could change this year if unemployment increases in line with forecasts, according to the Mortgage Bankers Association.

The measure enacted on Dec. 30, 2022 applies retroactively and could add servicing risks that lending divisions will likely consider in underwriting and pricing on new loans originated in the state.

The move, which comes with an unspecified number of layoffs, is expected to cost the company $3.8 million to $4.6 million in pretax charges in the second quarter.

Declining mortgage rates and home prices drove more positive views compared to the prior month, but December's overall outlook remained negative, Fannie Mae said.

The sector is not immune to the same economic instability that affects the single-family residential market, the Mortgage Bankers Association said.

Other investors could step into the breach as depositories depart, and the strain on nonconforming borrowers might not be that bad, recent forecasts suggest.

Higher interest rates helped drive down refinances by 87% and purchases by 42% compared to last year.

House hunting activity also slowed in December, with home tours declining 69% from the start of the year, a Redfin report found.

The 30-year fixed rate surged 15 basis points from a week earlier but ends 2022 at more than twice its mark from a year ago.

Sales of high-end homes fell 38.1% year-over-year, per a Redfin report.

The overall share of distressed mortgages fell in every state, but the effects of Hurricane Ian led to a small uptick in early-stage late payments compared to one year ago, CoreLogic said.

Kindred Home Loans will serve buyers of properties in Dallas and San Antonio markets.

Foreclosure starts also increased by over 19% between October and November but remain below pre-pandemic levels.