{"id":2057,"date":"2022-08-09T12:35:08","date_gmt":"2022-08-09T16:35:08","guid":{"rendered":"https:\/\/www.newviewadvisors.com\/commentary\/?p=2057"},"modified":"2022-08-09T12:35:08","modified_gmt":"2022-08-09T16:35:08","slug":"hmbs-july-2022-part-ii-refi-retreat-continues","status":"publish","type":"post","link":"https:\/\/newviewadvisors.com\/commentaries\/2022\/08\/09\/hmbs-july-2022-part-ii-refi-retreat-continues\/","title":{"rendered":"HMBS July 2022 Part II: Refi Retreat Continues"},"content":{"rendered":"<p>HMBS payoffs fell again in July, as the refinancing wave continued its retreat. July payoffs totaled about $1 billion, the lowest amount in 17 months. Outstanding HMBS rose to a record $59 billion due to a combination of fairly strong new issuance, a faster roll-up from rising interest rates and the drop in payoffs.<\/p>\n<p>The HECM refinance wave was assisted by a higher HECM lending limit (now $970,800) and surging home prices. Higher interest rates have finally caught up with the HMBS market, driving down principal limit factors (initial loan-to-value ratios) sharply.<\/p>\n<p>In July HMBS paid off at an 18% annual rate, the first 1-month payoff rate below 20% in over a year, but still above historical averages. HMBS prepayment rates are bound to fall further in the third quarter.<\/p>\n<p>2021 broke all previous records with a $13.2 billion HMBS issuance total. 2021\u2019s record may still fall: over $9.7 billion was issued in the first seven months of 2022.<\/p>\n<p>Our friends at <a href=\"https:\/\/www.recursionco.com\">Recursion<\/a> broke down the prepayment numbers further: last month\u2019s 98% MCA mandatory purchases totaled $303 million, 31% of the total, the highest percentage in a year and a half.<\/p>\n<p>New View Advisors compiled this data from publicly available Ginnie Mae data as well as private sources.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>HMBS payoffs fell again in July, as the refinancing wave continued its retreat. July payoffs totaled about $1 billion, the lowest amount in 17 months. Outstanding HMBS rose to a record $59 billion due to a combination of fairly strong new issuance, a faster roll-up from rising interest rates and the drop in payoffs. The [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[],"class_list":["post-2057","post","type-post","status-publish","format-standard","hentry","category-hmbs"],"_links":{"self":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/comments?post=2057"}],"version-history":[{"count":2,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2057\/revisions"}],"predecessor-version":[{"id":2062,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/posts\/2057\/revisions\/2062"}],"wp:attachment":[{"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/media?parent=2057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/categories?post=2057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newviewadvisors.com\/commentaries\/wp-json\/wp\/v2\/tags?post=2057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}