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So long, 2024! It was a year of mixed signals for reverse mortgage volume as large forward lenders got more serious about the space and interest rates showed an encouraging trend, but ultimately ended in disappointing fashion with rates bouncing sharply higher since September.
HECM endorsements gained 9.1% to 2,626 loans in December, as loans continue […]
HECM endorsements inched up 0.7% to 2,408 loans in November, again illustrating the benefits of lower 10 year CMT rates a few months back. We’d expect perhaps another month or so of similar volume before the recent increases in that key rate exert their unfortunate gravity on these volume figures.
The regions were somewhat negative […]
HECM endorsements jumped 11.1% to 2,392 loans in October, breaking out of what had been a very tight recent range of volume for the industry. This was undoubtedly helped by lower 10 year CMT rates ahead of last month’s first Fed Funds rate cut in over four and a half year. Unfortunately, this key rate […]
HECM endorsements dropped -2.1% to 2,153 loans in September, continuing a tight range of volume for the industry we’ve seen since June. There have only been 2 months since November outside the 2,105-2,274 level, but we are starting to see further evidence of case number issuance responding positively to the recent decline in interest rates.
August HECM endorsements dropped -3.3% to 2,200 loans, furthering the back and forth we’ve seen with these volumes throughout the summer. The good news is that case number issuance responded positively to the decline in interest rates in July, rising 16.9% to 3,438.
July saw HECM volume recover 8% from the June drop, as 2,274 loans were endorsed. At this point the past 4 months look like a yoyo on this report, so we’ll have to wait for at least one more month to see which way things lean.
The regions were essentially inverse from last month as well, […]
June marked the midpoint of yet another year flying by way too fast with a bounce back to April levels for HECM endorsements. Overall volume dropped -14.4% to 2,105 loans.
Case numbers also showed a decline in the most recent month available (May), with all 3 loan purpose segments falling off.
May blossomed beautifully for HECM endorsements, with the pace of growth so far this year increasing noticeably. Endorsement volume grew 16.9% to 2,460 loans.
But before we get too excited, it’s important to note that April case numbers issued were essentially flat, limiting the runway ahead for further or faster growth for the industry quite yet.
April continued the slow but steady rise in endorsements, with 2,105 loans representing a 2.3% increase from March. And yet again, we saw March case numbers issued trend higher there as well, continuing the streak of consecutive monthly increases so far in 2024.
If there’s one thing the low volume in case numbers issued the past few months tells us, it’s that endorsements will eventually follow suit. The well (cases issued) has been getting drier, and in February HECM endorsements (water) dropped -11.8% to 1,900 loans.
All of the regions were down on the month, with Pacific/Hawaii dropping the […]
