VA Home Loan Changes, GI Bill Benefits Among Help for Veterans in Year-End Bills Signed by Biden – Military.com
VA Home Loan Changes, GI Bill Benefits Among Help for Veterans in Year-End Bills Signed by Biden Military.com
VA Home Loan Changes, GI Bill Benefits Among Help for Veterans in Year-End Bills Signed by Biden Military.com
It hasnât been a good few weeks for banks whose names begin with âSiâ (Silvergate, Silicon Valley, and Signature, with Silicon Valley Bank declaring Chapter 11 bankruptcy this morning; todayâs Rundown discusses how the bank crisis may impact lenders). Ah, those clever secondary marketing folks. Cornerstoneâs Henry S. frets, âI canât believe itâs bank collapse season already. I just finished taking down my train derailment decorations.â Certainly, time flies by, and I hope youâre wearing some green today. Originally a religious holiday to honor St. Patrick, who introduced Christianity to Ireland in the 5th century, St. Patrickâs Day has evolved into a celebration of all things Irish, with the first parade on March 17, 1762, in New York City, featuring Irish soldiers who served in the English military. It certainly is more fun to think about celebrating the Irish than the constant stream of headlines as people race to conjecture about the health of world banking, and people crying âshoulda woulda coulda.â The markets seem to be performing a stress test on the Fed. The Federal Reserveâs (Fedâs) tightening seems to be finally having an effect, and an early victim has been smaller banks that did a poor job of managing interest rate and deposit concentration risk. (Todayâs podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking.)
Mortgage application volume increased for a second straight week as investors fled to the safety of government-guaranteed securities in the wake of three bank failures, and fears of depositor runs on several large regional banks. The Mortgage Bankers Association (MBA) said its Market Composite Index, a gauge of loan application volume, rose 6.3 percent on a seasonally adjusted basis during the week ended March 10. The index was 7 percent higher before adjustment. Joel Kan, MBAâs Vice President and Deputy Chief Economist said, âTreasury yields declined late last week, as market concerns over bank closures and the potential for broader ripple effects triggered a flight to safety in Treasury bonds. This decline pushed mortgage rates for all loan types lower, with the 30-year fixed rate decreasing to 6.71 percent, Home-purchase applications increased for the second straight week but remained almost 40 percent below last yearâs pace. While lower rates should buoy housing demand, the financial market volatility may cause buyers to pause their decisions.â [purchaseappschart] The Refinance Index increased 5 percent from the previous week but was 74 percent lower than the same week one year ago. The refinance share of total applications decreased to 28.2 percent s from 28.9 percent the previous week. [refiappschart] Kan noted that, while refinance activity was still well below that of a year earlier when it held a 48 percent market share, and rates are still more than 2 points higher, the dip did bring some borrowers back, as evidenced by the 5 percent increase in refinance applications last week.
The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 7.4 percent on a seasonally adjusted basis compared to the previous week. On an unadjusted basis, the Index was up 9 percent. The Refinance Index rose 9 percent from the previous week and was 76 percent lower than the same week in 2022. The refinance share of mortgage activity increased to 28.9 percent of total applications from 28.7 percent. [refiappschart] The Purchase Index was 7 percent higher than the prior week on a seasonally adjusted basis and up 9 percent before adjustment. Purchase volume has declined 42 percent on an annual basis. [purchaseappschart] âMortgage rates continued to increase last week. The 30-year fixed rate rose to 6.79 percent â the highest level since November 2022 and 270 basis points higher than a year ago,â said Joel Kan, MBAâs Vice President and Deputy Chief Economist. âEven with higher rates, there was an uptick in applications last week, but this was in comparison to two weeks of declines to very low levels, including a holiday week. Comparing the application indices from a year ago, purchase applications were still down 42 percent, and refinance activity was down 76 percent . Many borrowers are waiting on the sidelines for rates to come back down.â Other Highlights from MBAâs Weekly Mortgage Applications Survey
Did you know you can use a home loan for renovations? Renovation home loans cover the cost of purchasing and renovating a home. If youâre familiar with construction loans, renovation loans are similar. Also called âone-closeâ loans or renovation mortgages, renovation loans can offer buyers simplified financing for transforming a fixer-upper into an attractive, modernized […]
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The volume of mortgage application activity for both refinancing and purchasing fell again last week. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, decreased 5.7 percent on a seasonally adjusted basis during the week ended February 24 and was 4 percent lower on an unadjusted basis. The Refinance Index was down 6 percent compared to the previous week and was 74 percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 31.8 percent of total applications from 32.5 percent during the prior period. [refiappschart] The seasonally adjusted Purchase Index also suffered a 6 percent loss. The unadjusted version was down 3 percent week-over-week and 44 percent below its pace in the same week of 2022. [purchaseappschart] MBA spokesperson Joel Kan, vice president and chief economist, said, âThe 30-year fixed rate increased to 6.71 percent last week, the highest rate since November 2022, which drove a 6 percent drop in applications. After a brief revival in application activity in January when mortgage rates dropped down to 6.2 percent, there has now been three straight weeks of declines in applications as mortgage rates have jumped 50 basis points over the past month. âData on inflation, employment, and economic activity have signaled that inflation may not be cooling as quickly as anticipated, which continues to put upward pressure on rates.â
The time it takes to get a VA loan application approved for a house can vary depending on several factors. The timeline can be affected by various factors, such as the availability of appraisers and any unforeseen issues that may arise during the process like repairs, or underwriting conditions. However, on average, it takes around […]
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The Department of Veterans Affairs will reduce funding fee amounts for some of the loans it guarantees, reverting them to pre-2020 levels. The move will make getting a VA loan more affordable for prospective veterans. Starting April 7, first time users and subsequent users of the VA program will see lower fees associated with purchase, … [Read more…]