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13 MORTGAGE CREDIT AVAILABILITY ON THE DECLINE Mortgage credit availability decreased in January according to the Mortgage Credit Availability Index (MCAI), a report from the Mortgage Bankers Association (MBA) that analyzes data from ICE Mortgage Technology. e MCAI fell by 0.1% to 103.2 in January. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit. e index was bench- marked to 100 in March 2012. e Con- ventional MCAI decreased 0.3%, while the Government MCAI remained unchanged. Of the component indices of the Conven- tional MCAI, the Jumbo MCAI decreased by 0.4%, and the Conforming MCAI remained unchanged. "Mortgage credit availability was essentially unchanged in January and re- mained close to its lowest level since 2013," said Joel Kan, MBA's VP and Deputy Chief Economist. "Similar to December 2022, the availability of credit has been driven lower by declining originations and shrinking industry capacity as lenders have streamlined their oper- ations to cope with lower volumes. Additionally, as mortgage rates declined over the past month, the share of adjustable-rate mortgages has fall- en—consistent with a slight pullback in ARM offerings in this month's results. However, there has been a revival in mortgage application activ- ity over the past month and our forecast is for rates to continue to decline and housing activi- ty—including home sales and new home construction—to gradually pick up as we approach the spring homebuying season. ese developments could potentially change the credit availability landscape in the months ahead." e MCAI fell by 0.1% to 103.2 in January. e Conventional MCAI decreased 0.3%, while the Government MCAI remained unchanged. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 0.4%, and the Conforming MCAI remained unchanged. Journal SINGLE-FAMILY HOUSING COMPLETIONS UP 12% YOY e U.S. Census Bureau and the U.S. De- partment of Housing and Urban Development has announced the Monthly New Residential Construction Report for January 2023. Together, they announced the following new residential construction statistics for January 2023. Building Permits Privately owned housing units authorized by building permits in January were at a seasonally adjusted annual rate of 1,339,000. is is 0.1% above the revised December rate of 1,337,000 but 27.3% below the January 2022 rate of 1,841,000. Single‐family authorizations in January were at a rate of 718,000; this is 1.8% below the revised De- cember figure of 731,000. Authorizations of units in buildings with five units or more were at a rate of 563,000 in January. "Homebuilder sentiment increased for the second consecutive month in February, with all three components of the index rising," First Amer- ican Deputy Chief Economist Odeta Kushi said. "Conditions are still considered 'poor' overall, but the improvement signals that builders are feeling cautiously optimistic about the months to come." Housing Starts Privately owned housing starts in January were at a seasonally adjusted annual rate of 1,309,000. is is 4.5% (±15.9%) below the revised December estimate of 1,371,000 and is 21.4% (±10.6%) below the January 2022 rate of 1,666,000. Single‐family housing starts in January were at a rate of 841,000; this is 4.3% (±16.4%) below the revised December figure of 879,000. e January rate for units in buildings with five units or more was 457,000. "U.S. housing starts come in below consensus expectations at an annual pace of 1.31 million, 4.5% below the revised December estimate of 1.37 mil- lion and 21.4% below the January 2022 rate of 1.67 million," Kushi said. "Single‐family starts declined 4.3% compared with December." Housing Completions Privately owned housing completions in January were at a seasonally adjusted annual rate of 1,406,000. is is 1.0% (±9.8%) above the revised December estimate of 1,392,000 and is 12.8% (±13.0%) above the January 2022 rate of 1,247,000. "ere remains a large backlog of single-family homes under construction, as builders have been hampered by supply-side headwinds from labor shortages and high construction material costs," Kushi said. "ose homes are not move-in ready and thus do not meaningfully contribute to the stock of livable homes." Kushi added, "But single-family housing completions increased 4.4% this month and are up 12% year over year. Single-family completions have outpaced housing starts since July 2022, and that will likely put some downward pressure on the numbers of single-family homes under construction in the months ahead." Single‐family housing completions in January were at a rate of 1,040,000; this is 4.4% (±10.4%) above the revised December rate of 996,000. e January rate for units in buildings with five units or more was 349,000.