MBA Archives

Mortgage Credit Availability Improves Again

When mortgage credit is tight, it’s harder for prospective home buyers to secure financing. That means, fewer potential buyers will qualify for home loans and fewer homes will be sold. Fortunately, data from the Mortgage Bankers Association, shows mortgage credit has been loosening and the trend continued in October. In fact, the Mortgage Credit Availability Index – which is scored in such a way that any increase indicates credit is loosening, while a decline signals that lending standards are tightening – increased 1.5 percent from the month before. Mike Fratantoni, MBA’s chief economist, said October’s results are partly due to new loan programs. “Credit availability increased in October mainly as a result of new conforming loan programs, many of which were affordable housing programs which have lower down payment requirements,” Fratantoni said. A closer look at the numbers reveals that conforming loans did see the biggest increase, rising 2.7 percent over September. However, all loan categories loosened from the month before including loans backed by the Federal Housing Administration, as well as conventional and jumbo mortgages. More here.

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 Rate Increase Slows Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates rose last week from the week before. Rates were up 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 increase had a negative effect on mortgage application demand, despite the fact that rates were up only slightly from the previous week and remain near historic lows. In fact, the Market Composite Index – which measures both refinance and purchase activity – was down 3.5 percent, led by a 4 percent drop in the Refinance Index. The good news, according to MBA chief economist Michael Fratantoni, is that recent volatility appears to be settling down. “Between the recent TILA-RESPA regulatory change and the Columbus Day holiday, mortgage application volume has been more volatile than normal,” Fratantoni said. “However, that appears to be settling down somewhat.” Also in the report, demand for loans to purchase homes was 23 percent higher than it was during the same week last year. 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 Fell Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate mortgages with both conforming and jumbo balances, as well as loans backed by the Federal Housing Administration, fell last week from the week before. Rates are now at their lowest level since spring. The drop in rates – along with the continuing volatility caused by newly implemented industry regulations – caused a spike in mortgage application demand. In fact, the seasonally adjusted purchase index increased 16 percent from one week earlier and refinance activity was up 9 percent. “On an adjusted basis, application volume increased last week, led by a sharp rebound in government volume,” Mike Fratantoni, MBA’s chief economist, said. “We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures.” The spike in purchase applications – which are a good indicator of future home sales – puts purchase demand 9 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.

Mortgage Rates Mostly Unchanged Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were mostly unchanged last week from the week before. In fact, rates for 30-year fixed-rate mortgages with both conforming and jumbo balances were flat, while 15-year fixed-rate loans saw a slight decrease and loans backed by the Federal Housing Administration moved up. Despite favorable rates, however, application demand fell sharply due to new mortgage disclosures rules. “Application volume plummeted last week in the wake of the implementation of the new TILA-RESPA integrated disclosures, which caused lenders to significantly revamp their business processes, and as a result dramatically slowed the pace of activity,” Mike Fratantoni, MBA’s chief economist, said. “The prior week’s results evidently pulled forward much of the volume that would have more naturally taken place this week.” A closer look at the numbers reveals that the previous week did, in fact, see a 25.5 percent increase in overall mortgage demand – which includes both refinance and purchase activity. Last week, on the other hand, total demand for mortgage applications fell 27.6 percent. 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 To 5-Month Low

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates dropped last week to their lowest level since May. 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. Demand for mortgage applications surged in response to the drop. In fact, refinance activity was up 24 percent from one week earlier and purchase application demand – which is a good indicator of future home sales – rose 27 percent. Purchase applications are now 49 percent higher than they were during the same week one year ago – which is a positive sign after recent data seemed to show home sales beginning to slow following a strong summer. Lynn Fisher, MBA’s vice president of research and economics, said there were multiple factors that led to the surge in demand. “The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change,” Fisher said. 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.

Mortgage Activity Surges As Rates Dip

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate on 30-year fixed-rate mortgages and those backed by the Federal Housing Administration were unchanged last week from the week before. Rates on jumbo loans and 15-year fixed-rate mortgages both fell, however, during a week when there was considerable volatility due to the Federal Reserve’s decision not to raise interest rates. “We saw significant rate volatility last week surrounding the FOMC meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance,” Mike Fratantoni, MBA’s chief economist, said. “The 30-year fixed-rate remained unchanged over the week even though there was substantial intra-week fluctuation, but we saw rate decreases in other loan products like the 15-year fixed, 5/1 ARM, and 30-year jumbo.” Fluctuating rates led to a spike in application demand, with refinance activity up 18 percent over the previous week and purchase application demand – which is a good indicator of future home sales – up 9 percent, reaching its highest level since June. 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.