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Average Mortgage Rate Falls To 10-Month Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates dropped again last week, hitting their lowest point since last April. Rates were down across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration and 15-year fixed-rate mortgages. The decline spurred refinance activity, which increased 16 percent over the week before. Michael Fratantoni, MBA’s chief economist, told CNBC that the refinance rush was once again led by jumbo borrowers. “Treasury rates fell again last week, and mortgage rates fell to their lowest level in over a year, with rates on jumbo loans dropping to their lowest level since December 2012,” Fratantoni said. “As we have noted in recent weeks, borrowers with larger loans tend to be more sensitive to a drop in rates, because they stand to benefit more from refinancing.” Because of this, the average loan size for refinances set a new record at $316,000. Demand for loans to purchase homes, on the other hand, fell 4 percent from the week before, though they are now 30 percent higher than at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rate Drop Spurs Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates were down across all loan categories including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The sharp drop brought rates for conforming and FHA loans to their lowest level since last spring and caused a spike in refinance activity. In fact, the Refinance Index increased 16 percent last week and pushed total mortgage application demand 9.3 percent above week-before levels. Michael Fratantoni, the MBA’s chief economist, told CNBC that much of the demand was generated by jumbo borrowers, which are those with loan balances greater than $417,000. “Jumbo borrowers are benefiting from fierce competition for these loans,” Fratantoni said. “The 30-year fixed rate for jumbo loans dropped to its lowest level since April 2013 and is now 15 basis points below the rate for conforming loans.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

East Coast Snow Slows Mortgage Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week. Rates dropped across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Despite the lowest rates in months, however, demand for mortgages was down from the week before – mostly due to a 7 percent decline in the number of requests for applications to purchase homes. Michael Fratantoni, MBA’s chief economist, told CNBC blizzard conditions on the East Coast may be behind the decline in mortgage demand. “Mortgage rates fell below 4 percent in our survey for the first time since October 2015. The jumbo rate also decreased and was at its lowest level since April 2015,” Fratantoni said. “Despite the fall in rates, mortgage application activity was likely muted by the major East Coast snowstorm, although refinance activity increased very slightly.” Even though purchase application demand was down from the week before, it remains 17 percent higher than at the same time last year. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rates Fall For 3rd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates continue to defy expectations, falling for the third week in a row. In fact, rates were down across all loan categories including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The drop led to another bump in home loan demand, with both the refinance and purchase indexes seeing large gains. Refinance activity – which is generally more sensitive to rate fluctuations – was up 11 percent over the previous week, while demand for loans to buy homes rose 5 percent over the week before. Joel Kan, an MBA economist, told CNBC that mortgage rates are being affected by volatility in the financial market. “As a result of more financial market volatility and continued flight to quality by investors, mortgage rates have decreased 18 basis points since the first week of January 2016,” Kan said. That drop has rates at their lowest point since last October. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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Average Mortgage Rates Hit 3-Month Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop brought mortgage rates to their lowest level since last October. Michael Fratantoni, MBA’s chief economist, told CNBC rates fell because of volatility in global stock markets. “Global stock markets plunged last week, led by weakness in China, but further weakened by continued sharp drops in oil prices,” Fratantoni said. “Investors drove down Treasury yields in a flight to safety, and mortgage rates fell to their lowest level since last October.” As a result, refinance activity – which is most sensitive to rate fluctuations – spiked, rising 19 percent from the week before. Purchase application demand, on the other hand, slipped 2 percent, though it remains 17 percent higher than the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Home Loan Demand Rebounds As Rates Drop

Home loan demand has been volatile the past couple of months due to new mortgage regulations, the holidays, and the Fed’s interest rate announcement. But, according to the Mortgage Bankers Association’s Weekly Applications Survey, prospective borrowers returned last week following a holiday lull. In fact, mortgage application volume was up 21.3 percent from the previous week. Lynn Fisher, MBA’s vice president of research and economics, said the number of applications for loans to buy homes reached its second highest level since May 2010. “The good news for the new year is that following the holidays, application activity last week resumed at levels just exceeding those observed during early December, suggesting that the purchase market has picked up right where it left off,” Fisher told CNBC. Refinance activity also bounced back, climbing 24 percent from the week before. However, while purchase demand is now 19 percent higher than it was at the same time last year, refinance demand is 38 percent lower than last year. Also in the report, average mortgage rates fell across all loan categories including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Demand Falls After Loan Rush

Prior to the Federal Reserve’s interest rate announcement in mid-December, there was a sharp increase in home loan demand. Expectations that mortgage rates would soon move higher caused many to try and lock in a low rate before any increases occurred. But, because so many rushed to beat a possible rate hike, the two weeks following the Fed’s announcement saw a dramatic drop off in demand. “Refinance application volume increased for three weeks in a row in early December ahead of the Fed’s announcement that it was raising the federal funds rate,” Lynn Fisher, vice president of research and economics for the Mortgage Bankers Association, told CNBC. “During the two weeks following their announcement, holiday-adjusted refinance activity dropped substantially, even though the 30-year fixed rate increased by only 4 basis points over the same period.” According to the MBA’s Weekly Mortgage Applications Survey, refinance activity – which is generally more sensitive to rate fluctuations – did drop sharply, falling 37 percent from two weeks earlier. Purchase demand was also down, though it still remains 22 percent higher than the same week one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all U.S. retail residential mortgage applications. More here.

Mortgage Rates Mostly Down Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly down last week, in advance of the Fed’s latest policy announcement. Rates on 30-year fixed-rate mortgages with conforming balances were unchanged from the previous week while jumbo loans saw a slight decrease, as did loans backed by the Federal Housing Administration and 15-year fixed-rate loans. Because the Fed’s announcement may mean mortgage rates will be moving higher, refinance activity picked up from the week before. Michael Fratantoni, MBA’s chief economist, told CNBC borrowers were likely looking to move before rates do. “Some borrowers may have moved to lock in current rates in advance of the Fed’s likely increase this week,” Fratantoni said. Overall, demand for mortgage loan applications was down 1.1 percent from the week before, largely due to a 3 percent drop in the number of prospective buyers requesting applications. Still, purchase application demand remains 34 percent higher than at the same time one year ago. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rates Hold Steady From Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were virtually unchanged last week from the week before. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was down slightly, while jumbo loans remained unchanged from the previous week. Rates on loans backed by the Federal Housing Administration saw a minor increase and 15-year fixed-rate loans fell. Overall, mortgage rates have seen little movement over the past three weeks. But, because rates have plateaued at a higher level, refinance demand is slowing. In fact, last week’s Refinance Index was down 6 percent from the week before. Michael Fratantoni, MBA’s chief economist, told CNBC, refinance activity was down, even for a holiday week. “Volume always drops significantly during Thanksgiving week,” Fratantoni said. “However, even after adjusting for the holiday, with rates little changed last week, refinance volume slipped to its lowest level since late July.” On the other hand, demand for home purchase loans was up 8 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Latest Survey Finds Mortgage Rates Down

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate mortgages. The decline follows four consecutive weeks of increases. Despite lower rates, however, mortgage application demand fell from the previous week. In fact, the Refinance Index was down 5 percent and the Purchase Index – which is a good indicator of future home sales – was down 1 percent, though it remains 24 percent higher than at the same time last year. Michael Fratantoni, MBA’s chief economist, told CNBC demand for higher priced homes is still outpacing applications for more affordable homes. “Average purchase loan size climbed to a new survey high last week, as the higher end of the market continues to grow more quickly than the entry level,” Fratantoni said. The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. More here.