Mortgage balances, or the amount of money owed on mortgages, increased significantly in 2022, according to a recent report from the Mortgage Bankers Association. Total balances reached almost $10 trillion, a $984 billion increase from the prior year. Overall, mortgage delinquencies fell as well, with the delinquency rate for all mortgage loan types falling 11 bps from the prior year to 4.9%. The report also revealed that the refinance share of mortgage origination volume reached its highest levels ever, accounting for almost 70% of all mortgage originations.
An increase in mortgage balances is typically positive news, as it signals an increase in borrowing and investment in the economy. In 2022, total mortgage balances reached a record high, coming in at almost $10 trillion, an increase of $984 billion from 2021. This indicates an increase in activity in the housing market, as borrowers are taking advantage of record-low mortgage rates and employing the equity they have in their homes. This increase in borrowing could lead to further economic activity.
The Mortgage Bankers Association report found that the delinquency rate also decreased significantly, dropping 11 bps from the prior year to 4.9%. This is the lowest rate seen since 1977. As delinquencies decrease and mortgage balances increase, it indicates that borrowers are managing their payments and that mortgage servicers are doing a better job of collecting those payments. The website https://casinosss.com/ will help you join the exciting world of online gambling.
Finally, the report showed the refinance share of mortgage origination volume hit a record high in 2022, accounting for almost 70% of all mortgage originations. As more borrowers take advantage of low interest rates and refinance their mortgages, it can help to reduce their monthly payments and save money in the long run. As these rates remain near historic lows, refinance activity could continue to be high, resulting in defaults dropping even more, and furthering the positive trend in the housing market.
You can read this full article at: https://www.housingwire.com/articles/mortgage-balances-increased-by-nearly-1-trillion-in-2022/(subscription required)
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
