As mortgage rates fall as the spring buying season approaches, buyers are beginning to find their ways back to the once prohibitive real estate market when rates were 8% in October 2023.
The Mortgage Bankers Association this week reported that mortgage applications increased 10.4% from one week earlier.
Fast Facts
■ Treasury yields moved lower last week driving down mortgage rates for all loan types
■ The 30-year fixed mortgage rate decreased six basis points to 6.75%
■ Purchase activity is lagging from 2023 levels, but refinance applications have improved from their recent low point and are showing year-over-year gains
■ The refinance share of mortgage activity fell to 37.5% of total applications from 38.3% from the previous week
■ The FHA share of total applications decreased to 14.3% from 14.4% from the week prior
■ The VA share of total applications decreased to 14.2% from 16.3% from the week prior
■ The average contract interest rate for a 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) fell to 6.75% from 6.81%
Commercial Loan Activity – Delinquencies Increase
Delinquency rates for mortgages backed by commercial properties increased during the fourth quarter of 2023, according to the Mortgage Bankers Association’s report.
The difficulties affecting certain niches of the commercial real estate market are being reflected in the current delinquency rates as seen in the delinquency rate on CRE-backed loans higher in the final three months of 2023.
■ Delinquency rates increased to 6.5% of balances for loans backed by office properties and to 6.1% for lodging-backed loans
■ Delinquency rates for multifamily and industrial property loans both increased slightly but are not in the range being experienced by the office sector
■ The balance of commercial mortgages that are not current increased in December 2023 as compared to September 2023
■ 96.8% of outstanding loan balances were current or less than 30 days late at the end of the third quarter, down from 97.3% at the end of the third quarter of 2023
■ 2.3% were 90+ days delinquent or in REO, up from 2.2% the previous quarter
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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