As demand for mortgages is reduced due to rising rates, so are the valuations of these companies
Between June 10 and 17, 11 publicly traded mortgage companies saw their market value fall by $6.14 billion. According to a HousingWire review of stock market data, company valuations were reduced by 17.4% to $29 billion as investors exited the sector.
The list of these companies is below: Finance of America Companies Inc FOAFlagstar Bancorp Inc FBCHome Point Capital Inc HMPTLoanDepot LDIMr Cooper Group Inc COOPNew Residential Investment Corp. NRZOcwen Financial Corporation OCNPennyMac Financial Services Inc PFSIRocket Companies Inc RKTUWM Holdings Corp UWMC
What happened: According to Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey data, mortgage applications fell by 6, 3% from the previous week, reaching the lowest level since 2000.
Also read: Homebuyers Drop Sales at Record Highs: Report
The National Association of Realtors noted that sales of existing homes fell from 5.41 million in May to 5.12 million in June. This is the largest reduction in four months and the fifth consecutive month of decline. The consensus expectation was for 5.38 million. Moreover, it represented the fewest monthly sales since June 2020.
Additional data suggests that demand for larger homes and lower rates triggered by the COVID-19 pandemic are slowing significantly due to the Reserve raising interest rates federal.
"Buying activity has declined for conventional and government loans as a weaker economic outlook, high inflation and ongoing affordability issues impact demand buyers,” said MBA economist Joel Kan.
The MBA benchmark rate for 30-year mortgages fell from around 3.30% at the start of 2022 to 5.82% last week, increasing a check of typical monthly repayment of hundreds of dollars.
The median existing home price for all housing types in June was $416,000, up from $280,700 in March 2020, a more moderate increase than the national benchmark S&P Global REIT for all home sales, which was up more than 21% in May, marking 124 consecutive months of year-over-year increases, the longest streak on record.
Photo: Imagenet via Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Between June 10 and 17, 11 publicly traded mortgage companies saw their market value fall by $6.14 billion. According to a HousingWire review of stock market data, company valuations were reduced by 17.4% to $29 billion as investors exited the sector.
The list of these companies is below: Finance of America Companies Inc FOAFlagstar Bancorp Inc FBCHome Point Capital Inc HMPTLoanDepot LDIMr Cooper Group Inc COOPNew Residential Investment Corp. NRZOcwen Financial Corporation OCNPennyMac Financial Services Inc PFSIRocket Companies Inc RKTUWM Holdings Corp UWMC
What happened: According to Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey data, mortgage applications fell by 6, 3% from the previous week, reaching the lowest level since 2000.
Also read: Homebuyers Drop Sales at Record Highs: Report
The National Association of Realtors noted that sales of existing homes fell from 5.41 million in May to 5.12 million in June. This is the largest reduction in four months and the fifth consecutive month of decline. The consensus expectation was for 5.38 million. Moreover, it represented the fewest monthly sales since June 2020.
Additional data suggests that demand for larger homes and lower rates triggered by the COVID-19 pandemic are slowing significantly due to the Reserve raising interest rates federal.
"Buying activity has declined for conventional and government loans as a weaker economic outlook, high inflation and ongoing affordability issues impact demand buyers,” said MBA economist Joel Kan.
The MBA benchmark rate for 30-year mortgages fell from around 3.30% at the start of 2022 to 5.82% last week, increasing a check of typical monthly repayment of hundreds of dollars.
The median existing home price for all housing types in June was $416,000, up from $280,700 in March 2020, a more moderate increase than the national benchmark S&P Global REIT for all home sales, which was up more than 21% in May, marking 124 consecutive months of year-over-year increases, the longest streak on record.
Photo: Imagenet via Shutterstock
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
What's Your Reaction?
