Rate-and-term refinances soar 70% in August

"Overall activity dipped 1.8% month over month, with purchase locks down 9.8%. Refinancing, however, increased its share to 26% of all originations. In August, product mix shifted as nonqualified mortgage (non-QM) lending reached a record share of 8.3%. By product type, conforming loans dropped 123 basis points to 51% of all originations. Federal Housing Administration (FHA) loans edged up to 19% (+1 bps), U.S. Department of Veterans Affairs (VA) loans rose to 12.1% (+78 bps),"

"Adjustable-rate mortgages accounted for 10.25% of the total. Rates also shifted lower. The Optimal Blue Mortgage Market Indices's 30-year conforming fixed rate ended August at 6.49%, down 25 bps from July. The share of highest-pricing tier loans rose five bps to 75%, which Optimal Blue said reflects cleaner loan profiles and stronger pricing. Lower rates also pressured servicing values. Mortgage servicing rights for 30-year loans slipped 4 bps to 1.15%."

"In the secondary market, agency cash window deliveries fell to 24% of executions, while agency mortgage-backed securities deliveries climbed to 40%. This trend underscores how lenders are strategically adapting to optimize execution in order to gain market share, Vough said. We're seeing deeper engagement in securitization alongside more loans sold to the highest price during loan sales, signaling that capital markets strategies are adjusting to increase profitability."

Overall mortgage activity declined 1.8% month over month while purchase locks dropped 9.8% and refinancing share increased to 26% of originations. Nonqualified mortgage (non-QM) lending reached a record 8.3% share in August. Conforming loans fell 123 basis points to 51% of originations, while FHA rose to 19%, VA to 12.1%, and USDA to 0.7%. Adjustable-rate mortgages represented 10.25% of originations. The 30-year conforming fixed rate fell to 6.49%, highest-pricing tier loans rose to 75%, mortgage servicing rights slipped to 1.15%, and secondary-market deliveries shifted toward MBS and securitization strategies.

Read at www.housingwire.com