Summary
- • The average 30-year fixed mortgage rate in the US as of May 2023 is 6.39%
- • In 2022, the total value of mortgage originations in the US was $2.25 trillion
- • The Federal Housing Administration (FHA) insured 7.95% of all mortgage originations in 2022
- • The average down payment for first-time homebuyers in 2022 was 6%
- • Refinance applications accounted for 30.7% of total mortgage applications as of May 2023
- • The mortgage delinquency rate in Q1 2023 was 3.62%
- • The average credit score for conventional mortgage borrowers in 2022 was 756
- • Mortgage lenders originated approximately 5.7 million home purchase loans in 2021
- • The average loan-to-value ratio for conventional mortgages in 2022 was 80%
- • Adjustable-rate mortgages (ARMs) accounted for 9.3% of total applications in May 2023
- • The homeownership rate in the US was 65.9% in Q1 2023
- • The median existing-home price for all housing types in April 2023 was $388,800
- • VA-guaranteed loans made up 10% of total loan originations in 2022
- • The average time to close a mortgage loan in April 2023 was 48 days
- • Mortgage debt in the US totaled $11.42 trillion in Q1 2023
Grab your calculators and your caffeine fix, folks, because were diving into the numbers behind the dizzying world of mortgages! From the jaw-dropping $2.25 trillion in mortgage originations to the 6.39% average 30-year fixed rate, the mortgage industry is serving up a feast of digits thats sure to make even the most seasoned number crunchers raise an eyebrow. Whether youre a first-time homebuyer eyeing that 6% down payment or a seasoned player in the game of refinancing, these mortgage statistics are the real estate equivalent of a thrilling rollercoaster ride!
Borrower Characteristics
- The average credit score for conventional mortgage borrowers in 2022 was 756
- The average mortgage debt per borrower in the US was $236,443 in Q4 2022
- The average credit score for FHA borrowers was 669 in 2022
- The average debt-to-income ratio for conventional mortgage borrowers was 36% in 2022
- The average age of mortgage borrowers in the US was 45 years old in 2022
- The share of mortgage applications with co-borrowers was 23% in 2022
- The share of mortgage loans with a debt-to-income ratio above 43% was 23.7% in 2022
Interpretation
In a world where numbers govern the art of home-buying, the mortgage industry statistics of 2022 paint a vivid picture of the modern borrower. Where the holy grail of a 756 credit score opens the gates to conventional mortgage paradise, a 669 score is the charming key to the FHA realm. As the average debt per borrower in the US reaches for the skies at $236,443, the debt-to-income tightrope dance is played out at a 36% ratio for conventional seekers. In this game of numbers, the wisdom of the 45-year-old borrower reigns supreme, with 23% of them opting to navigate the mortgage maze with a co-pilot. Yet, beware the treacherous waters where 23.7% flirt dangerously with debt-to-income ratios above 43%, for in the mortgage world, as in life, the line between dream home and financial chaos can be as thin as a credit score.
Government Programs
- The Federal Housing Administration (FHA) insured 7.95% of all mortgage originations in 2022
- VA-guaranteed loans made up 10% of total loan originations in 2022
Interpretation
In a delightful twist of fate, it seems that Uncle Sam has become the ultimate matchmaker in the housing market, with the Federal Housing Administration and VA swooping in as the benevolent wingmen for nearly 18% of all mortgage originations in 2022. With these government-backed players making up such a sizable portion of the game, it's clear that in the world of home financing, sometimes it takes a little federal flair to seal the deal.
Homebuyer Trends
- The average down payment for first-time homebuyers in 2022 was 6%
- The homeownership rate in the US was 65.9% in Q1 2023
- The share of home purchase loans for first-time homebuyers was 31% in 2022
- The average mortgage loan amount for first-time homebuyers was $261,000 in 2022
Interpretation
The mortgage industry statistics provide a snapshot of the evolving landscape for first-time homebuyers in the US. With an average down payment of 6%, aspiring homeowners are finding ways to break into the market despite rising costs. The homeownership rate reaching 65.9% in Q1 2023 reflects the enduring dream of owning a piece of the American dream. However, the fact that only 31% of home purchase loans went to first-time buyers in 2022 signifies the challenges they face amidst competitive bidding wars and limited inventory. With an average mortgage loan amount of $261,000, it's evident that navigating the real estate market requires a delicate balance of financial savvy and perseverance.
Interest Rates
- The average 30-year fixed mortgage rate in the US as of May 2023 is 6.39%
- The average interest rate for a 15-year fixed-rate mortgage was 5.75% as of May 2023
- The average mortgage interest rate spread was 2.72 percentage points in April 2023
- The average mortgage interest rate for jumbo loans was 6.35% as of May 2023
- The average mortgage interest rate spread for FHA loans was 1.26 percentage points in April 2023
- The average mortgage interest rate for 5/1 ARMs was 5.75% as of May 2023
- The average mortgage interest rate for VA loans was 5.98% as of May 2023
- The average mortgage interest rate margin for ARMs was 2.75 percentage points in Q1 2023
Interpretation
In the realm of mortgage rates, it seems like the numbers are playing a game of musical chairs, with borrowers anxiously eyeing the empty seat labeled 'low rates.' As the average 30-year fixed mortgage rate in the US takes a merry leap to 6.39% in May 2023, accompanied by its ever-so-slightly younger sibling, the 15-year fixed-rate mortgage at 5.75%, it appears that the interest rate spread is performing a bouncy dance of 2.72 percentage points. Meanwhile, jumbo loans are strutting at 6.35%, flaunting their exclusivity, while FHA loans are being modest at a mere 1.26 percentage points spread. With 5/1 ARMs and VA loans holding steady, it seems like the mortgage interest rate margin for ARMs is playing hard to get at 2.75 percentage points in Q1 2023. Here's to hoping that the music doesn't stop anytime soon, leaving borrowers without a chair—and a good rate!
Loan Characteristics
- The average loan-to-value ratio for conventional mortgages in 2022 was 80%
- The average mortgage payment in the US was $1,487 in 2022
- The average mortgage loan amount for a new home purchase was $406,953 in Q1 2023
- The share of mortgages with private mortgage insurance was 18% in 2022
- The average loan term for conventional mortgages was 27.5 years in 2022
- The share of mortgage loans with mortgage insurance was 20.2% in 2022
- The share of mortgage loans with a loan-to-value ratio greater than 90% was 19.8% in 2022
- The average mortgage loan amount for investment properties was $354,000 in Q1 2023
- The average mortgage loan amount for second homes was $283,000 in Q1 2023
- The share of mortgage loans with an escrow account was 79% in 2022
- The share of mortgage loans with a term of 15 years or less was 10.2% in 2022
Interpretation
In the intricate world of mortgages, numbers tell a tale of calculated risks and financial maneuvers. With an average loan-to-value ratio of 80%, homeowners are walking a tightrope between investment and debt. The average monthly mortgage payment of $1,487 is a reminder of the cost of owning a piece of the American dream. Meanwhile, a glance at the figures reveals a shifting landscape, with a notable 18% of mortgages donning the safety net of private mortgage insurance. As the housing market evolves, with loan amounts for new homes averaging $406,953 and a significant 19.8% of loans sporting a loan-to-value ratio exceeding 90%, it's evident that homeowners are weighing their options with savvy deliberation. The mortgage industry's intricate dance of numbers is a symphony of financial prudence and homeownership aspirations, where every percentage point and dollar amount holds a key to unlocking the door to a brighter future.
Loan Performance
- The mortgage delinquency rate in Q1 2023 was 3.62%
- The share of mortgage loans in forbearance was 0.39% as of May 2023
- The foreclosure inventory rate was 0.57% in Q1 2023
Interpretation
The mortgage industry seems to be striking a delicate balance, akin to a high-wire act in a circus. The numbers show that while there are signs of stability with relatively low delinquency and forbearance rates, the looming shadow of foreclosure still hovers. It's like a game of financial Jenga, where one wrong move could lead to destabilizing consequences. As we watch this tightrope walk between borrowers and lenders, it remains crucial for all parties to maintain a steady hand and a keen eye on potential risks ahead.
Loan Processing
- The average time to close a mortgage loan in April 2023 was 48 days
- The denial rate for conventional home purchase loans was 9.3% in 2021
- The average mortgage closing costs in 2021 were $6,905 including taxes
- The mortgage application pull-through rate was 75.3% in April 2023
- The share of mortgage applications submitted online was 76% in 2022
- The average mortgage rate lock period was 30 days in Q1 2023
- The average time from application to funding for purchase loans was 51 days in April 2023
- The share of mortgage applications denied due to insufficient credit history was 14.9% in 2021
- The average mortgage underwriting fee was $300 in 2022
- The share of mortgage applications submitted via mobile devices was 19% in 2022
- The share of mortgage applications approved with conditions was 72.4% in April 2023
- The share of mortgage applications withdrawn by applicants was 8.2% in 2021
Interpretation
In the unpredictable dance of the mortgage industry, where numbers and deadlines juggle with dreams and finances, the statistics paint a vivid picture of the intricate ballet homebuyers must navigate. From the 48-day waltz to close a loan in April 2023 to the 9.3% denial rate for conventional home purchase loans in 2021, each step requires skill and patience. 2021 saw the average closing costs of $6,905, a price tag on the dream of homeownership, while a 75.3% pull-through rate hinted at the earnestness of applicants. The rhythm of technology echoed in the 76% of online applications in 2022, with a 30-day rate lock period setting the beat for Q1 2023. From the 51-day wait for funding to the 14.9% denied due to credit history, the choreography of mortgage approvals twirls delicately. The $300 underwriting fee added a touch of cost to the routine, as the 19% mobile application share tapped into modern convenience. The finale of 72.4% approved with conditions and 8.2% withdrawn applications in 2021 portrayed the climax and curtain fall of this intricate performance where dreams meet reality in the realm of real estate.
Loan Types
- Adjustable-rate mortgages (ARMs) accounted for 9.3% of total applications in May 2023
- The share of adjustable-rate mortgages with initial fixed periods of 5/1 was 44.7% in 2022
- The share of non-conventional loans (FHA, VA, and USDA) was 22.6% of all originations in 2021
Interpretation
In a dance of numbers that could rival any tango, the mortgage industry statistics paint a fascinating picture of borrower behavior. With adjustable-rate mortgages (ARMs) making up a modest 9.3% of total applications in May 2023, it seems some borrowers are not quite ready to take a walk on the wild side of rate fluctuations. However, the fact that nearly half of those ARMs had initial fixed periods of 5/1 in 2022 suggests a cautious flirtation with risk. And with non-conventional loans representing a cool 22.6% of all originations in 2021, it appears that some borrowers are opting for a financial path less traveled. So, as the mortgage market continues its intricate waltz, borrowers must decide whether to follow the rhythm of tradition or take a bold leap into the unknown.
Market Size
- In 2022, the total value of mortgage originations in the US was $2.25 trillion
- Mortgage lenders originated approximately 5.7 million home purchase loans in 2021
- The median existing-home price for all housing types in April 2023 was $388,800
- Mortgage debt in the US totaled $11.42 trillion in Q1 2023
- The mortgage servicing market was valued at $8.4 billion in 2022
Interpretation
In a world where the value of mortgages reaches the astronomical heights of $2.25 trillion, and homeowners are tossing around median prices like $388,800 as if they were pocket change, one can't help but wonder if the Mortgage Industry has become the playground of the rich and famous. With mortgage debt soaring to a staggering $11.42 trillion, it seems we could all use a crash course in financial literacy to avoid getting swept away in this ocean of zeros. But hey, at least the mortgage servicing market is thriving at $8.4 billion - perhaps there's hope yet for those of us clutching our piggy banks for dear life.
Market Structure
- Non-bank mortgage companies originated 68.1% of all mortgages in 2021
- The total number of mortgage professionals in the US was approximately 415,000 in 2021
- The total number of residential mortgage-backed securities (RMBS) issuances in 2022 was $1.2 trillion
- The average mortgage loan officer commission was 1.01% of the loan amount in 2022
- The share of mortgage applications submitted through mortgage brokers was 15% in 2022
Interpretation
In a world where non-bank mortgage companies reign supreme, representing the power players of the mortgage industry, one must not overlook the underappreciated heroes - the 415,000 mortgage professionals hustling behind the scenes. As residential mortgage-backed securities soared to a whopping $1.2 trillion in 2022, the average mortgage loan officer valiantly stood their ground, earning a modest yet respectable 1.01% commission. And while mortgage brokers held their ground, commanding a respectable 15% share of applications, it begs the question - in this high-stakes game of numbers, who truly holds the key to the castle?
Refinancing
- Refinance applications accounted for 30.7% of total mortgage applications as of May 2023
- The share of cash-out refinances was 54% of all refinances in Q4 2022
- The average mortgage loan amount for refinances was $297,000 in Q1 2023
- The share of mortgage loans with private mortgage insurance that were refinances was 35% in 2022
- The average mortgage loan amount for cash-out refinances was $322,000 in Q1 2023
Interpretation
In a world where statistics shape the very foundations of our financial landscape, the mortgage industry paints a picture of savvy borrowers looking to navigate the turbulent waters of homeownership with finesse. A not-so-subtle nod to the unpredictable tides of the housing market, the data reveals a dance between prudence and ambition. With nearly a third of mortgage applications opting for the refinancing route, and over half of those daring to dip into the cash-out pool, one thing is clear - homeowners are not just aiming to stay afloat but to ride the waves of opportunity. As the averages of loan amounts fluctuate like a tempestuous sea, one thing remains constant - the drive for financial stability is a strong undercurrent in the ever-changing waters of mortgage trends.
