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MortgagePoint June2023

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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 76 J O U R N A L June 2023 » Lower-middle priced (75% to 100% of the regional median): up 5.3%, down from 14.1% in March 2022. » Higher-middle priced (100% to 125% of the regional median): up 4.3%, down from 14.5% in March 2022. » Higher-priced (125% or more than the re- gional median): up 2.9%, down from 12.9% in March 2022. » Attached versus detached: Attached single-family rental prices grew by 5% year over year in March, compared with the 3.2% increase for detached rentals. Charlotte, North Carolina, posted the highest year-over-year increase in single-fam- ily rents in March 2023, at 7.7%. Orlando, Florida, and St. Louis registered the next highest annual gains, a respective 6.6% and 6.4%. Las Vegas and Phoenix saw annual rent price declines, both at -0.2%. MI INDUSTRY SUPPORTS $400B-PLUS IN ORIGINATIONS IN 2022 T he year 2022 was another banner year for the mortgage market, as re- ported by the U.S. Mortgage Insurers (USMI), as the industry supported nearly $402 billion in mortgage originations, 97% of which was for home purchases. Of those mortgages, approximately one million borrowers benefited from the nu- merous low (or no) down payment programs offered by Fannie Mae and Freddie Mac (the GSEs). Approximately 97% of these mortgag- es were new purchases and first-time home- buyers represented nearly 62% of purchasers with private mortgage insurers. All-in-all, this brought the market up to $1.5 trillion in outstanding mortgages with current private mortgage insurance by the end of 2022, underscoring the industry's critical role in serving as the first layer of pro- tection against credit risk in the GSE-backed conventional mortgage market. "At a time when affordability is a para- mount issue, conventional loans backed by private MI continued to make the dream of homeownership a reality for 1 million first- time, low- to moderate-income and minority borrowers," said Seth Appleton, President of USMI. "The fact that the majority of bor- rowers with private MI were first-time buyers underscores the great benefits they receive from the availability of low down payment mortgages backed by private capital." Low- to moderate-income borrowers also benefited from these programs; nearly 35% of those that purchased or refinanced a mort- gage with private insurance had incomes below $75,000 with an average loan amount of $341,716 according to the GSEs combined data. According to USMI, the insurance industry has enabled approximately 38 mil- lion people to access affordable, low down payment mortgages in its 66-year history. "The MI industry has continued to be a source of financial strength in the markets, providing uninterrupted access to mortgage credit without any special interventions or actions during the sudden heightened stress we have been witnessing in other sectors of financial services," USMI Chairman Adulfo Marzol said. "The same was true during the extraordinary financial stress that hit during the onset of COVID-19. MI remained avail- able and affordable at all times." Marzol continued, "these transactions have proven to be a durable and cost-effective source of support for the private MI indus-

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