Month-to-date lock volume increased a little over 27% as compared to the same time last month on the back of the recent market rally. Interestingly, the purchase-refi mix remained almost identical compared to this the same time last month at roughly 56% purchase and 44% refinance. The distribution of locked loans remained relativity constant as…
Month over month there was a 44% increase in GOVT volume into the >90% LTV / <680 FICO with the largest portion of this shift coming from 60-90% LTV / 720-799 FICO ranges. This shows a marked increase in higher risk credit in the FHA/VA sector as the second quarter closes out. We welcome ideas…
The above chart describes pull-through for loans locked in CompassPoint™ during the first quarter of 2019, as measured on June 30, 2019. Compass distinguishes between total pull-through (WA Pull Thru in the chart) and clean pull-through (WA Clean Pull Thru in the chart). Total pull-through is the percentage of locked loans that closed by the…
The chart above shows the dollar distribution of locks by Agency product for the top 10 products locked in June. The modest shift of volume to shorter terms from May to June is consistent with the increase in refinance share of locks stemming from the current rate environment. High balance also had a strong showing,…
Month over month shifts in credit quality are consistent with the increase in refinance activity in the current market. High-quality MI eligible loans saw increases month over month, with volume shifting from higher-risk LTV tranches. Interestingly, the 60-80% LTV high FICO tranches also cooled by about .40% in volume, shifting into the >80-90% LTV range. …
The treasury yield curve has steepened since May and the 2-10 year spread currently equals 27bps, up 12bps from May month-end. The rally in US treasuries, caused by economic uncertainty and the likelihood of the fed lowering the Fed Funds rate on July 31, 2019, has pushed benchmark yields to multiyear lows. The 10 year…