Tag: Michael Fratantoni

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.

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again 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. Mortgage rates are now at their lowest level since May 2013. Michael Fratantoni, MBA’s chief economist, told CNBC rates continue to fall because of economic volatility overseas. “Mortgage rates dropped again last week to their lowest level in more than 3 years, as investors continued to seek safety in US assets given the global turbulence following the Brexit vote,” Fratantoni said. That economic uncertainty has rates falling and refinance activity up. Last week, mortgage application demand increased 7.2 percent largely due to a spike in the refinance index. On the other hand, purchase activity – which is generally less sensitive to rate fluctuations – was relatively flat from the week before and down 5 percent year-over-year. But, because the July 4th holiday fell on a different week last year, those numbers may be slightly skewed. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage application demand bounced back from a big drop two weeks ago, surging 9.3 percent last week. The increase included a 7 percent gain in refinance activity and a 12 percent spike in the number of Americans requesting applications for loans to buy homes. Still, industry analysts say demand for home purchase applications should be stronger considering the high level of buyer interest and mortgage rates that remain historically low. Last week, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell slightly. At the same time, average rates were up for loans backed by the Federal Housing Administration and unchanged for mortgages with jumbo balances. Michael Fratantoni, MBA’s chief economist, told CNBC that despite expectations that the Fed would raise rates this month, May’s week jobs report may change that. “Given the weak employment report for May, we think it is unlikely that the Fed will raise rates in June,” Fratantoni said. “However, as other economic data are pointing to continued economic growth, we do expect that they will increase rates following their July meeting.” For now, though, average mortgage rates remain near three-year lows and are lower than they were 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.

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.

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.

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.