May 2, 2022
April HECM endorsements sagged -3.8% to 6,265 loans – not bad after setting a 10 year high last month. HECM refinances have always been driven more by home price appreciation than interest rate changes, but rising rates do cool things down a bit.
We’d expect slower growth than last year at minimum, but further volume declines are certainly possible as expected rate increases work through the system.Nine of the ten regions were down, with Southwest the loan exception, rising 9% to 545 loans.
Lenders were more mixed, with 4 of the top 10 gaining:
Fairway jumped 15.1% to 305 loans, showing great resiliency in their non-refi oriented model
Open Mortgage rose 12.6% to 241 loans
FAR increased 8.7% to 611 loans, a 12 month high
HighTech was up 7.1% to 121 loans
With 10 year CMT rising precipitously in March we can expect turbulence ahead, but there’s no doubt the industry has really capitalized on favorable conditions to start the year.
If you’re looking to grow your business with more than just refis, let’s talk!
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