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Mortgage Rates Rise For 3rd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased across all loan categories last week, 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. Last week’s rate increase continues a recent upward trend that is powered by a stronger economy and significantly improved employment picture. It is also partly driven by expectations that the Federal Reserve may raise interest rates in December. Mike Fratantoni, MBA’s chief economist, told CNBC, “Mortgage rates were up for the third-consecutive week as markets responded to a stronger-than-expected job market report for October.” But despite the rate increase, demand for mortgage applications fell less than expected. In fact, purchase application demand was essentially flat from the week before and refinance activity, which tends to be more sensitive to rate fluctuations, fell just 2 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Demand Up 20% From Last Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage purchase applications is now 20 percent higher than it was at the same time last year. Rising application demand is evidence that more Americans are interested in buying a home and have begun the mortgage process. But, despite the improvement over last year, the survey’s results also show that, when compared to one week earlier, overall demand has dropped. In fact, refinance activity was down 8 percent and purchase demand dropped 6 percent. The slowdown follows a recent spike in activity and comes on a week when average mortgage rates fell. According to the report, the average contract interest rate for 30-year fixed-rate mortgages with both conforming and jumbo balances dropped from the week before, as did rates for loans backed by the Federal Housing Administration and 15-year fixed-rate mortgages. Michael Fratantoni, MBA’s chief economist, told CNBC the weekly average mortgage rate isn’t telling the whole story. “The prior week included days with much lower rates due to volatility around the Fed’s announcement that drove refinance volume up,” Fratantoni said. “Last week, a more stable rate produced less volume, as rates at this level just do not provide an incentive for most homeowners to refinance.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Survey Finds Mortgage Rates Down Slightly

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat last week. There were slight declines in rates on 30-year fixed-rate mortgages with conforming balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Loans with jumbo balances, on the other hand, ticked up from the week before. Despite favorable rates, however, demand for mortgage applications fell from the week before. In fact, refinance demand was down 9 percent and purchase application demand – which is a good indicator of future home sales – was down 4 percent. Michael Fratantoni, MBA’s chief economist, told CNBC that the Fed’s anticipated rate hike – which may’ve played a role in declining demand – may not come as soon as some have expected. “Given recent economic growth and job market health, we had been expecting a September rate hike,” Fratantoni said. “However, given recent financial market volatility and global growth concerns, along with still-low US inflation, we are expecting the first rate hike to be moved to December 2015.” The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.