mortgage rates Archives

Average Home Loan Reaches New Record High

According to the Mortgage Bankers Association’s Weekly Applications Survey, the size of the average home loan has reached a record high. And, since the survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications, that’s saying something. But, though the increasing size of the average mortgage may seem like the natural result of rising home prices, it actually has more to do with the fact that there has been more buying activity at the higher end of the real-estate market recently. In short, there are more expensive homes on the market than there are affordable homes to buy. As inventory picks up on the lower end of the market, the size of the average mortgage will likely moderate. Also in the report, mortgage rates were relatively flat from the week before, with little change seen among 15-year fixed-rate mortgages or 30-year fixed-rate loans with both conforming and jumbo balances. Loans backed by the Federal Housing Administration saw the biggest change, falling from the week before. Lynn Fisher, MBA’s vice president of research and economics, says the market was fairly steady last week. “Markets appeared to hit pause last week, with little new information emerging about upcoming administrative or legislative policy changes,” Fisher told CNBC. More here.

Mortgage Rate Drop Is 1st In Three Weeks

The Mortgage Bankers Association’s Weekly Applications Survey has been conducted every week since 1990 and covers 75 percent of all retail residential mortgages. In other words, it’s a pretty reliable gauge of where mortgage rates and application demand are headed. According to their most recent release, 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 brought rates to their lowest level in three weeks. Lynn Fisher, MBA’s vice president of research and economics, told CNBC markets were adjusting last week. “Markets adjusted expectations last week as attempts to repeal and replace the Affordable Care Act stalled and bond yields declined,” Fisher said. “This pushed mortgage rates down for the first time in three weeks.” But though average rates were down, demand for mortgage applications was relatively flat from the week before. In fact, overall mortgage application activity was down less than 1 percent from the week before. Still, demand for loans to buy homes – which is a good indicator of future sales – was up 4.8 percent over last year at the same time. More here.

Average Mortgage Rates Mostly Steady Last Week

Demand for home loans dropped last week, according to new figures from the Mortgage Bankers Association. The MBA’s Weekly Applications Survey – which tracks mortgage rates and application demand – showed a 2.7 percent decline in the number of Americans requesting applications for home loans. This time, however, the drop wasn’t related to a significant increase in mortgage rates. In fact, average rates were unchanged for 30-year fixed-rate loans with conforming loan balances, down for jumbo loans, and up only slightly for FHA and 15-year fixed-rate loans. In other words, mortgages rates were relatively steady from the week before. However, they are up from where they were last fall. Because of this, Mike Fratantoni, MBA’s chief economist, says home buyers are beginning to turn to adjustable rate mortgages. “Home buyers in a strong housing market are looking for ways to extend their purchasing power and ARMs are one way to do that,” Fratantoni told CNBC. Last week, adjustable rate mortgages increased to 9 percent of total application demand. But though that’s the highest it’s been in nearly three years, it’s still far below what it was before the housing crash, when it hit a peak of 35 percent. The MBA’s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. More here.

Lower Rates Give Buyers Spring Fever

The Mortgage Bankers Association’s Weekly Applications Survey is a measure of both mortgage rates and demand for loan applications. Conducted weekly since 1990, the survey is a good source for tracking market trends. According to the most recent survey, average mortgage rates fell last week across all loan categories. Rates declined for 30-year fixed-rate mortgages with both conforming and jumbo balances, 15-year fixed-rate loans, and mortgages backed by the Federal Housing Administration. MBA economist, Joel Kan, said the rate drop was largely due to events overseas. “Rates declined last week as investors favored U.S. Treasury bonds due mainly to political concerns from abroad,” Kan told CNBC. Regardless of the reason rates moved lower, prospective buyers took advantage. In fact, demand for loans to buy homes rose 7 percent from the week before. But because spring is typically the busiest time of year for home buyers, some of that spike might have to do with the approaching sales season more than the rate drop. Also in the report, refinance activity climbed 5 percent over the previous week. It is now at its highest level so far this year. The week’s results contain an adjustment for the Presidents’ Day holiday. More here.

Mortgage Rates See Slight Increase Last Week

Average mortgage rates were up last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. Mortgage rates increased across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, 15-year fixed-rate loans, and mortgages backed by the Federal Housing Administration. Despite the increase, however, rates remain roughly within the same range they’ve been since they jumped last November. Joel Kan, MBA’s associate vice president of industry surveys and forecasting, says last week’s increase was related to expectations that the Fed might raise interest rates soon. “Rates were up last week as markets assessed that the Fed might increase rates sooner than expected on the strength of a recent pick-up in inflation readings” Kan told CNBC. Whatever the reason, higher mortgage rates have taken a toll on refinance activity, which dropped again last week. Demand for loans to buy homes also fell last week and, according to Kan, isn’t as high as it usually is at this time of year. Typically, buyers are beginning the mortgage process in anticipation of the spring season. This year’s lull may be due to higher interest rates, though it may also be the result of there being fewer homes available for sale in many markets across the country. More here.

Mortgage Rates Mixed In Latest Survey

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates were up and down last week. For example, rates for 30-year fixed-rate loans with conforming balances fell, while jumbo loans moved up slightly. On the other hand, mortgages backed by the Federal Housing Administration saw a decline and rates for 15-year fixed-rate loans were unchanged from the week before. But despite the fact that rates remained within a fairly steady range last week, demand for mortgage applications was down overall. Refinance activity fell to an eight-year low – mostly due to mortgage rates moving higher over the past few months. At the same time, purchase activity is 3 percent higher than it was at the same time last year, though down from the week before. In other news from the MBA, mortgage credit availability increased for the fifth consecutive month in January. That’s good news for prospective buyers. When lending standards are easing, it makes it more likely that qualified home buyers will be approved for a loan. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of retail residential mortgage applications. More here.

Mortgage Rates Moved Higher Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage interest rates moved up last week. Rates increased for 30-year fixed-rate loans with both jumbo and conforming balances, as well as 15-year fixed-rate mortgages. Loans backed by the Federal Housing Administration saw rates flat from the week before. The rate increase contributed to a 3.2 percent drop in the number of Americans requesting applications for loans last week. Another reason for the drop in demand, according to MBA chief economist, Michael Fratantoni, was changes to a proposal that would’ve reduced mortgage insurance premiums on FHA loans. “Following the decision to suspend a proposed decrease in the FHA mortgage insurance premium, FHA refinance applications dropped more than 25 percent, while FHA purchase applications fell almost 6 percent,” Fratantoni told CNBC. Still, even with last week’s decline, the number of applications for loans to buy homes remains higher than it was last year at the same time and Fratantoni continues to believe home sales this year will exceed last year’s levels. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rates Hit Lowest Level In A Month

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell again last week – marking the third consecutive weekly decline. The drop brought rates to their lowest level in a month, with decreases seen across all loan categories including 30-year fixed-rate mortgages with both jumbo and conforming balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Despite the drop, however, demand for mortgage loan applications stayed relatively flat from one week earlier. The refinance index – which is generally more affected by rate changes – rose 7 percent, while the seasonally adjusted purchase index fell 5 percent. Michael Fratantoni, told CNBC that demand is down from where it was at the end of last year. “Refi volume is still down sharply from the end of last year, remaining 13 percent below the level from four weeks ago,” Fratantoni said. On the other hand, the number of prospective home buyers applying for loans to purchase homes is just 1 percent below where it was 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.

Market Movement Sends 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 mortgages with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. The drop marks the second-straight week-over-week decline and follows a period, after the election, when mortgage rates rose for several consecutive weeks. Lynn Fisher, MBA’s vice president of research and economics, says markets are still adjusting. “Ten-year Treasury yields fell the week following New Year’s Day as markets continue to adjust their expectations about the incoming administration and Federal Reserve policy,” Fisher told CNBC. Typically, mortgage rates follow the yield on the U.S. 10-year Treasury. Despite the recent volatility, though, mortgage rates are still just slightly higher than they were at the same time last year. Also in the report, as a result of mortgage rates moving lower, both refinance and purchase activity was up from one week earlier – with the Purchase Index up 6 percent from the previous week. The MBA’s weekly applications survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Top Tips For Selling A House This Year

Selling a home can be challenging in any year. Even if market conditions are perfect for homeowners who want to sell, just the act of finding a buyer, shopping for a new place, and organizing a move can be overwhelming. Add in lower for-sale inventory, higher mortgage rates, and economic uncertainty and it may seem like too much to take on. Fortunately, there’s no shortage of help available to guide you through this year’s real estate market. A recent article on Trulia breaks down some of the top tips for selling a home in the new year. First on their list is hiring the right agent. Having a professional who knows the local market and your needs can reduce your stress level and make everything else run more smoothly. You’re also going to want to prepare for competition. Analysts expect inventory to rise this year and that means an increasing number of homes for buyers to choose from. Making your house stand out from the pack might mean staging it according to the demographic most likely to be moving to your neighborhood. In other words, if you live somewhere popular with young families, think about staging an extra bedroom as a nursery. You should also be sure to keep up with technology. These days, everything from virtual tours to drone photography can be used to set your listing apart. Ultimately, though, nothing works better than pricing your home correctly from the start. With a good agent and the right price, you shouldn’t have any trouble selling your house in 2017. More here.