Recent stats suggest originators are set to benefit from an influx of business that is tougher to originate but provides larger commissions.
Changes in interest rates suggest loan officers may have to hunt harder for originations that may ultimately be more lucrative.
"Overall, trends in mortgage applications last week were consistent with the ongoing shift towards a purchase market accompanied by growth in employment and higher interest rates,” said Lynn Fisher, vice president for research and economics at the Mortgage Bankers Association, reports CNBC.” Although contract interest rates fell by 3 basis points due to economic uncertainty abroad last week, they remain 40 basis points above April levels and the refinance share of mortgage applications fell to 48 percent, the lowest rate since June of 2009."
The average 30 year fixed mortgage rate fell to 4.04 percent from the previous week’s 4.08 percent; and the average 15 year fixed-rate mortgage fell to 3.20 percent from 3.24 percent.
And at the same time – perhaps as a result – applications were also on the rise last week.
Applications rose 4.6 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association, and volume shot up 22 percent year-over-year.
But all is not sunshine and rainbows for originators, as refinance rates took a hit.
“The refinance share of mortgage activity decreased to 48.0 percent of total applications, its lowest level since June 2009, from 48.9 percent the previous week,” MBA said in an official release. “The adjustable-rate mortgage (ARM) share of activity increased to 7.1 percent of total applications.”
"Overall, trends in mortgage applications last week were consistent with the ongoing shift towards a purchase market accompanied by growth in employment and higher interest rates,” said Lynn Fisher, vice president for research and economics at the Mortgage Bankers Association, reports CNBC.” Although contract interest rates fell by 3 basis points due to economic uncertainty abroad last week, they remain 40 basis points above April levels and the refinance share of mortgage applications fell to 48 percent, the lowest rate since June of 2009."
The average 30 year fixed mortgage rate fell to 4.04 percent from the previous week’s 4.08 percent; and the average 15 year fixed-rate mortgage fell to 3.20 percent from 3.24 percent.
And at the same time – perhaps as a result – applications were also on the rise last week.
Applications rose 4.6 percent on a seasonally adjusted basis, according to the Mortgage Bankers Association, and volume shot up 22 percent year-over-year.
But all is not sunshine and rainbows for originators, as refinance rates took a hit.
“The refinance share of mortgage activity decreased to 48.0 percent of total applications, its lowest level since June 2009, from 48.9 percent the previous week,” MBA said in an official release. “The adjustable-rate mortgage (ARM) share of activity increased to 7.1 percent of total applications.”
