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Mark Hemingway

Mortgage Market Update for September 9th

Friday, September 11, 2020 - Article by: Mark Hemingway - Security Financial Services, LLC - Message

Mortgage lenders were chained to their desks during the second quarter of 2020 with the highest quarterly origination volume on record with nearly $1.1 trillion in first lien mortgages originated in the quarter. Black Knight also reported that refinance volumes were up over 60% from Q1 2020 and more than 200% from the same time last year, accounting for nearly 70% of all first lien originations by dollar value. "Despite the nation being under pandemic-related lockdowns for much of the quarter, a record-breaking surge in mortgage originations occurred in Q2 2020, driven by the record-low interest rate environment," said Data & Analytics President Ben Graboske.

The ultra-rate environment boosted mortgage application volume in the latest week, reports the Mortgage Bankers Association (MBA). The MBA reports that the Market Composite Index, a measure of total mortgage loan application volume, rose 2.9% for the week ending September 4, 2020. The Refinance and Purchase Index both increased by 3%. The 30-year fixed-rate mortgage was unchanged at 3.07% with 0.36 in points and fees. The survey covers over 75% of all U.S. retail residential mortgage applications.

After the three-day tech wreck, U.S. stocks are rebounding while bond prices are steady and near unchanged. The NASDAQ's recent plunge pushed the index into correction territory with a 10% decline. The NASDAQ (10,847) closed below its 50-day Moving Average (10,880) yesterday but has "gapped" higher or opened above this support level to trade at 11,098. The index closed at 6,860 back on March 23 at the height of the pandemic.

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