Sam Gendusa December 6, 2022

Newsletter - December 2022

There were no surprises when real estate data agency ATTOM released its Q3 Residential Property Mortgage Origination Report last month.

Mortgage originations were down 47% from Q3 of last year—the sixth quarterly decrease in a row and the steepest annual drop since 2001.

Mortgage rates that are more than double the 3.10% average of a year ago, combined with high home prices, have locked many would-be homeowners out of the market.

The $636.5 billion volume in Q3 loans is a 22% decrease from $819.9 billion in Q2. More than $1.19 trillion was lent in the third quarter of last year.

But it’s not all doom and gloom.

There was a 2.7% uptick in mortgage applications in mid-November as rates dropped from 7.14% to 6.90% among signs of easing inflation.

There’s no such good news for refinance activity.

Refinance activity remained depressed, down 88% over the year,” said Mortgage Bankers Association’s Chief Economist Joel Kan. “There is very little refinance incentive with rates so much higher than last year.”

No kidding. Why would anyone refinance a sub-4% loan now?

Lenders originated just 660,767 refinance loans in Q3. That’s down 31% from Q2 and almost 68% from the same time last year. This was the sixth consecutive quarterly drop in refinance activity.

But with the spike in home prices since the start of the pandemic, homeowners have built up a lot of equity. Instead of refinancing, they’re tapping into it with HELOCs.

HELOC (home equity line of credit) originations have increased during five of the last six quarters. In Q3, lenders originated 364,921 HELOCs—a 5% increase from Q2 and a nearly 48% increase from the third quarter of last year.

Will mortgage rates finally go down in 2023? Experts polled by The Mortgage Reports expect 30-year mortgage rates to land anywhere between 5% and 9.31% next year.

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Employee Of The Month

Congratulations to Jennifer for winning Employee of the Month! Jen has worked here for almost 11 years and she’s gained so much knowledge during that time. She was just recently promoted to Senior Titles Consultant and she’s been doing a great job in her new position. She’s always so willing to help any of her fellow team members out with questions and she puts all her experience to use each day. She’s also one of the quickest producers we have, and she manages to complete a high amount of orders for our clients while maintaining very high accuracy. In the past month she’s also helped us get caught up on several internal projects which has been so helpful. She’s always willing to jump in wherever she’s needed and she does it all with a positive attitude!
We’re so lucky to have her here and we are all looking forward to seeing how much she continues to thrive in her new position too. Congratulations, Jennifer!

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