MBA Archives

Average Mortgage Rate Drops Again

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 loans. The drop marked the second consecutive week of declines and brought rates to their lowest level since July. But, though the decrease stirred up refinance activity, purchase application demand was flat from the week before and down 14 percent from last year’s level. Michael Fratantoni, MBA’s chief economist, told CNBC the numbers may not tell the whole story. “The mortgage industry is celebrating the one year anniversary of the TRID/KBYO regulatory implementation date this week,” Fratantoni said. “Purchase application volume last week was almost 14 percent below the same week a year ago. That was the last week for mortgage applications to be covered by the prior disclosure regulations and as a result there was a spike in application activity.” In other words, though this week’s results show year-over-year purchase activity down significantly, it should return to normal with next week’s survey. The MBA has conducted their weekly survey since 1990. It covers 75 percent of all retail residential mortgage applications. More here.

Survey Finds Average Mortgage Rates Down

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates decreased 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. Michael Fratantoni, MBA’s chief economist, says the Fed’s decision to leave rates unchanged led to the drop. “Treasury rates fell through the course of last week, as the Fed left their target rate unchanged, and concerns grew again about global growth, particularly in Europe and Japan,” Fratantoni said. “Refinance volume dipped for the week, but purchase application volume continues to show 2016 as a strong year.” Last week, demand for loans to buy homes was up slightly from the week before and 10 percent higher than the same week one year earlier. The size of the average loan was also up, however – which indicates that much of the buying activity remains on the higher end of the market. Refinance activity, on the other hand, was down 2 percent from the previous week, despite declining rates. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Average Mortgage Rates Up Over Week Before

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates increased 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. Rates increased to levels last seen in June, though they remain low by historical standards. Michael Fratantoni, MBA’s chief economist, told CNBC the jump was spurred, in part, by speculation that the Federal Reserve may raise interest rates this week. “Mortgage rates increased to their highest level since June last week as comments by some Fed officials made it appear that the Federal Reserve is closer to raising rates,” Fratantoni said. “The average refi loan size fell to its lowest level in three months as more jumbo borrowers left the market.” But while refinance and purchase application demand did fall from one week earlier, they both remain up from last year, with refinance activity 26 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.

Home Buyers Return After Holiday Weekend

The number of home buyers requesting mortgage loan applications rose 9 percent last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The rebound, which follows the Labor Day holiday, reverses several weeks of slow demand. Lynn Fisher, MBA’s vice president of research and economics, told CNBC Americans are seeing their incomes rise and it’s helping home sales. “The purchase market remains supported by an improving U.S. labor market,” Fisher said. “Newly released data from the U.S. Census this week indicates that the median income increased by 5.2 percent last year, the highest rate of increase since 2007. Other recent but less comprehensive measures show wage growth continuing to strengthen in 2016.” Along with higher incomes, low mortgage rates are also drawing potential buyers to the market. Last week, average rates were down across most loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances. Mortgages backed by the Federal Housing Administration also saw a rate decline from the week before. 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 Flat In Latest Survey

The Mortgage Bankers Association’s Weekly Applications Survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. For this reason, it is a closely followed measure of where mortgage rates and application demand are headed. According to the most recent survey, average mortgage rates were mostly flat 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. As a result, both refinance and purchase application demand were also relatively flat from the week before. However, compared to last year both are up. Refinance demand is now 43 percent higher than at the same time last year and demand for loans to buy homes is up 7 percent. Michael Fratantoni, MBA’s chief economist, told CNBC the year-over-year improvement has been seen on both ends of the market. “Although the pace of job growth slowed in August, purchase volume continues to run strong at 7 percent above last year at this time,” Fratantoni said. “This strength is broad based, with growth at both the high and low ends of the market.” More here.

Mortgage Rates Hold Steady Near Lows

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were relatively flat 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. With rates still hovering just above historic lows, demand for mortgage loan applications saw a bump over the week before. In fact, the seasonally adjusted purchase index rose 1 percent from the week before, while the refinance index – which is generally more sensitive to rate movement – saw a 4 percent increase. Michael Fratantoni, MBA’s chief economist, says with rates as low as they are, there should be an even greater increase in the number of borrowers taking advantage of favorable conditions. “The last time rates were at these levels, the refi index was almost twice as high,” Fratantoni told CNBC. “At these rate levels, there are borrowers who still stand to benefit, but there are many homeowners who have already taken advantage of refinancing and are not yet incentivized to do it again.” 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 Sparks Increased Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications spiked 7.1 percent last week due to falling mortgage rates. Average rates were down for 30-year fixed-rate mortgages with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration. On the other hand, the average contract interest rate for 15-year fixed rate mortgages was unchanged from the week before. Joel Kan, the MBA’s associate vice president of industry surveys and forecasts, says lingering economic concerns pushed rates lower. “With lingering concerns over a weak second quarter reading of US GDP growth, along with continuing anxiety over global growth and financial markets, rates edged lower for the second week in a row,” Kan said. Lower rates led to a spike in refinance activity, which was up 10 percent over the previous week. It also helped boost demand for loans to buy homes 3 percent higher than the week before. Purchase activity is now 13 percent higher than it was during the same week one year earlier. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Survey Finds Average Mortgage Rates Down

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell 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. But despite lower rates, demand for mortgage applications actually fell from the week before. In fact, the Market Composite Index – which measures both refinance and purchase application demand – was down 3.5 percent from the week before. Lynn Fisher, MBA’s vice president of research and economics, told CNBC that the number of Americans requesting loan applications is still higher than last year, though things are slowing. “Purchase application volume continues to run ahead of last year’s pace, but after growing quite strongly in the first half of the year, the rate of improvement has decelerated this summer,” Fisher said. Still, mortgage applications to buy a house are up 6 percent from one year ago. Refinance demand, on the other hand, is 56 percent higher than 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 Increased Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates rose across all loan categories last week, 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 increase slowed mortgage demand, especially refinance activity. Michael Fratantoni, MBA’s chief economist, told CNBC activity has been up-and-down lately, despite the fact that rates are well below where they were last year at this time. “Despite the 30-year fixed mortgage rate being almost 50 basis points lower than a year ago, refinance activity has been extremely sensitive to rate increases as the pool of borrowers who can benefit from refinancing continues to diminish,” Fratantoni said. But it wasn’t just refinance activity, demand for loans to buy homes was also down, dropping 3 percent from the week before. Still, total mortgage application volume is up 42 percent from the same week one year ago. And though that increase can partly be credited to rising refinance demand spurred by declining mortgage rates, home sales are also up over last year. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Slight Rate Increase Slows Mortgage Demand

The number of Americans requesting mortgage applications fell 1.3 percent last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The decline was due, in part, to a slight increase in average mortgage rates. The survey found rates up for 30-year fixed-rate mortgages with both conforming and jumbo balances, as well as 15-year fixed-rate loans. Mortgage rates for loans backed by the Federal Housing Administration were unchanged from the previous week. Michael Fratantoni, MBA’s chief economist, told CNBC that refinance volume remains high while purchase demand has been slow since the holiday. “Recent swings in mortgage rates have been relatively muted compared to Treasury rates, although on net both remain below their levels from just prior to the Brexit vote,” Fratantoni said. “Refinances fell slightly with rising rates last week, but the refinance share of 64.2 percent of applications was the highest since February of this year, as purchase volume was slow to come back following the July 4thholiday.” Demand for loans to buy homes, though 16 percent higher than last year, has been hampered by lower-than-normal inventory levels across much of the country. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications.