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42 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Mortgage Interest Rates Continue to Fall New data shows 30-year fixed rates are experiencing the biggest drop as the year moves forward. T he Federal Hous- ing Finance Agency (FHFA) has conducted its monthly interest rate survey for 4,437 loans closed during the last five business days in April across 17 lenders, and has reported a decline by over 10 basis points across in all mortgage interest rates. Interest rates have been falling since February 2017. The largest drop in interest rates from March to April was on 30- year fixed rates for homes costing less than $424,100, which fell 20 ba - sis points from 4.24 percent to 4.04 percent. Factoring in other types of mortgages other than a 30-year fixed, the average interest rate on all mortgages showed the smallest drop, down 14 basis to 3.98 percent from a previous 4.12 percent. The National Average Contract Mortgage Rate for Previously Occupied Homes Index, which calculates interest rates on homes with at least one previous owner, dropped to 3.97 percent from 4.12 percent (15 basis points) and is currently the lowest interest rate reported by the institutions surveyed. Similarly, the average effective interest rate on all loans also declined 15 basis points from 4.25 percent to 4.10 percent, which is good news for homeowners but less fortunate for lenders. In keeping with April's trend, the average loan amount also fell slightly from $312,700 to $311,600, a nominal difference of $1,100 in comparison to March's $11,100 mean increase. It's worth noting that all re - ports, except the specified 30-year fixed, can include 15-year mort- gages and adjustable-rate mort- gages. The survey, however, does not include mortgages that were refinanced from another mort- gage or balloon mortgages. Nor does it include mortgages that are insured or guaranteed by the Federal Housing Administration or the United States Department of Veteran Affairs, multi-family loans, or loans on mobile homes. While the FHFA does not name the 17 lenders surveyed for the report specifically, it does specify that they include an array of commercial banks, mortgage companies, savings associations, and mutual savings banks. San Jose Buyers See Fastest Closing Times Seven U.S. markets have faster-than- average closing times, including Denver and Dallas. T he nation might aver- age closing times of 50- plus, but in seven U.S. markets, homebuyers enjoy a faster-than-typical closing process, according to the recent Home Value Forecast released by Pro Teck Services in late May. The Forecast looked at more than 200 metro markets across the country, and just seven had clos - ing times at or under the 50-day mark. The market with the fastest time-to-close? San Jose, California. At just 41 days, San Jose homebuyers enjoyed the quick - est closing process in the nation last month. But fast closing times are nothing new for the metro, according to Pro Teck, and with tight inventory, it may remain that way for some time. "Quicker closing days in San Jose, California, have been the norm for the last few years, with dips to the 50-day range each of the last few years during Q2," Pro Teck reported. "With the lack of inventory and increasing employ - ment in San Jose, we don't see these market dynamics changing anytime soon." The San Francisco-Redwood- City-South San Francisco metro came in as the No. 2 fastest-closing city with a 42-day time-to-close, followed by Oakland-Hayward- Berkeley, California (45 days); Denver-Aurora-Lakewood, Colorado (49 days); Boulder, Colorado (49 days); Dallas-Plano-Irving, Texas (50 days); and Fort Worth-Arlington, Texas (50 days). The key to closing this quickly? Pro Teck said it's fast bidders. "In these markets, multiple bids are coming on listing day," Pro Teck reported. "To be competitive, winning bidders are pre-approved, have no contingencies and often have larger down payments—all leading to less risk and a quicker close with the banks." Pro Teck's forecast also ranked the month's strongest and weakest 10 metros in the coun - try. The majority of the top 10 were located in the West, with Bellingham, Washington, taking the No. 1 spot. Rounding out the list was Boise City, Idaho; Fresno, California; Modesto, California; Mount Vernon-Anacortes, Washington; Olympia-Turnwater, Washington; Sacramento- Roseville-Arden-Arcade, California; San Diego-Carlsbad, California; Seattle-Bellevue-Everett, Washington; and Stockton-Lodi, California. At the bottom of the list was Huntsville, Alabama, though Pro Teck noted, "while at the bottom of our ranking this month, the majority of these metros are in much better shape than our bot - tom metros from years past." Also at the bottom were Santa Fe, New Mexico; Miami- Miami Beach-Kendall, Florida; Shreveport-Bossier City, Louisiana; Chicago-Naperville- Arlington Heights, Illinois; Lake County-Kenosha County, Illinois-Wisconsin; Milwaukee- Waukesha-West Allis, Wisconsin; Virginia Beach-Norfolk-Newport News, Virginia-North Carolina; Atlantic City-Hammonton, New Jersey; and Rockford, Illinois.