U.S. Mortgage Bankers Brace For A Wave of Refinancings

U.S. Mortgage Bankers Brace For A Wave of Refinancings. Mortgage Bankers Association State of the Industry 2015

U.S. Mortgage Bankers Brace For A Wave of Refinancings video duration 51 Second(s), published by kabali fans on 20 08 2016 - 07:08:44.

With U.S
mortgage rates near their lowest level since April and showing signs of falling further, some lenders are preparing for another refinancing wave, http://thatchannel.com https://www.patreon.com/thatchannel They aim to be the preeminent organization representing the mortgage brokerage industry in .

Live on the 2012 Miracle Weekend on Sunday, June 3, Mortgage Brokers Association of BC employees showcase their support and their year of fundraising for In this webinar recording, Dr
Michael Fratantoni, Chief Economist and Senior Vice President for Research and Industry Technology at the Mortgage Bankers http://www.teamhammerhouse.com Eric Levin gives his thoughts on the state of the industry after attending the Mortgage Bankers Associationu200b Annual .

With U.S. mortgage rates near their lowest level since April and showing signs of falling further, some lenders are preparing for another refinancing wave, an unexpected development after the Federal Reserve began hiking short-term interest rates in December.

Borrowing costs on home loans, which are closely linked to longer-term bond yields, could fall after U.S. Treasury prices jumped on Tuesday. Last week, a 30-year mortgage cost 3.68%, up a touch from the week before but are down slightly from a year ago, when it was 3.86%.

If rates edge a bit lower, about half of the more than $5 trillion of home loans that get bundled into government-backed securities could be eligible for refinancing, according to Sarah Hu, a senior mortgage strategist at BNP Paribas.

Few expected another refinancing boom after the Fed started lifting short-term borrowing costs in December. But longer-term yields in the bond market have been plunging this year as money managers seek shelter from sinking stock markets and from slowing growth in China, underscoring the limits of the central bank’s power as it tries to normalize lending costs.

“It’s incredible that mortgage rates are plummeting,” said Ted Tozer, president of Ginnie Mae, a government-backed housing company that guarantees $1.6 trillion of mortgage securities. He added that he wouldn’t be surprised if 2016 beat Ginnie Mae’s 2013 record volume of $464 billion for overall loans guaranteed.
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More mortgage refinancings could be a boon to earnings at lenders including big banks but could hurt investors in securities backed by home loans.

On Tuesday, the 10-year Treasury yield fell 0.08 percentage point to 1.83%. If mortgage rates fall to around 3.5%, another 2.1 million borrowers would be able to refinance. That would bring the total number of loans eligible to around 8.8 million, or nearly 20% of loans, a report from data company Black Knight said on Tuesday. There haven’t been that many loans eligible for refinancing since 2012-13, when rates were at historic lows.

The Mortgage Bankers Association, a trade group, has increased its projections for refinancing. In the middle of December, it expected $415 billion of loans to be refinanced this year, but in mid-February, its forecast was 25% higher, at $520 billion.
Lenders Gear Up

Private lenders are also gearing up for more business.

“It’s clear, we’re seeing a high level of refinancings beyond what initial projections were,\