Real Estate Daily Market Update: February 6, 2018

Real Estate Daily Market Update: February 6, 2018

 We’ll add more market news briefs throughout the day. Check back to read the latest.

Most recent market news

Tuesday, February 6

Mortgage Bankers Association (MBA) Mortgage Credit Availability Index (MCAI)

  • The MCAI increased 2.1 percent to 182.9 in January. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. The index was benchmarked to 100 in March 2012.
  • The Conventional MCAI rose by more (up 3.6 percent) than the Government MCAI (up 0.9 percent). The component indices of the Conventional MCAI both increased from the month prior, with the Jumbo MCAI gaining more (up 6.1 percent) than the Conforming MCAI (up 1.1 percent).

Mortgage Bankers Association; Powered by Ellie Mae’s AllRegs Market Clarity

“Credit availability increased across the board in January, more than reversing December declines in almost all component indices,” said Lynn Fisher, MBA’s Vice President of Research and Economics.

“Jumbo credit programs rebounded most strongly and reached a new series high, driven by an increase in the number of programs with reduced documentation requirements. In government lending programs, credit availability remains somewhat lower than the rest of 2017.”

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News from earlier this week

Monday, February 5

Black Knight’s Mortgage Monitor

  • Though mortgage delinquencies ended 2017 at a 23-month high (up 164K from 2016 year-end), in non-hurricane-impacted areas – representing 90 percent of the total market – delinquency rates declined
  • The national delinquency rate in non-hurricane-affected areas was 11 percent below long-term norms
  • The total number of mortgages either past due or in foreclosure fell by more than 140K in non-hurricane-affected areas, pushing the non-current rate in these areas down to 10 percent below long-term norms
  • A total of 649K foreclosure starts were initiated in 2017, the fewest of any year since 2000
  • 2017 saw the fewest first-time foreclosure starts on record, which were both 15 percent below 2016 levels and roughly half their pre-crisis annual average
  • While foreclosure inventory is on track to normalize in 2018, more than 125K active foreclosures remain in which no payment has been made in more than two years; 63K have not had a payment in five years or more
  • The 232K total foreclosure sales (completions) in 2017 marked the lowest single-year total since the turn of the century

December First Look release

Hurricane impact update

“Hurricanes Harvey and Irma significantly impacted 2017 mortgage performance metrics,” said Black Knight Data & Analytics Executive Vice President Ben Graboske. “Overall, there were approximately 164,000 more past-due loans at the end of 2017 than the year before, pushing the national delinquency rate to a 23-month high.

“When Black Knight isolated non-hurricane-impacted areas – which represent 90 percent of the entire active U.S. mortgage universe – we see the national delinquency rate actually fell to 11 percent below long-term norms. Likewise, the 90-day delinquency rate was also up six percent from last year, with roughly a third more seriously delinquent loans than we’d expect in a healthy market.

“Excluding the hurricane impact, though, we see that there were 84,000 fewer loans 90 or more days past due than last year; a 14 percent reduction. The national non-current rate – which tracks all loans 30 or more days past due or in active foreclosure – edged down slightly from 2016, even including the effects of the storms.

“Isolating those non-hurricane areas, though, we see that the total number of past-due mortgages fell by more than 140,000 – which brought the non-current rate in these areas down 10 percent below long-term norms.”

Email market reports to press@inman.com.