As expected, the ability-to-repay and QM rules have dampened the housing market recovery. Combine that with new mortgage disclosures, which are just around the corner, and we’ll continue to see a slowdown in what should be the ideal time to buy a home.
In more positive news, the survey found that the foreclosure rate dropped from 0.78% in 2013 to 0.57% in 2013, while the single-family home delinquency rate fell from 2.16% to 1.76%. The percentage of single family mortgage loans made to first time homebuyers increased in 2014 to 14% — its highest since the survey’s inception — from 13% in 2013. The 30-year fixed-rate mortgage dominated the housing market, remaining over the 50% mark for 2014.
A total of 182 banks responded to the survey, 77% from institutions with less than $1 billion in assets.
Read the survey results.