mortgage rates Archives

Mortgage Rates Continue To Fall

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.

Mortgage Rates Drop To Near Record Lows

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to their lowest level in more than three years last week. And, in the case of jumbo loans, rates fell to lows not seen since 2011. Michael Fratantoni, MBA’s chief economist, told CNBC that financial market volatility is behind the rate drop. “Mortgage rates have been low for years, but the impact of Brexit has brought us close to record lows once again, with jumbo rates already at their lowest levels, giving more borrowers a larger incentive to refinance,” Fratantoni said in reference to Britain’s exit from the European Union. In fact, refinance activity – which is more sensitive to rate fluctuations – surged last week, climbing 21 percent from the week before. With rates down across all loan categories, including FHA loans and 15-year fixed-rate mortgages, that’s no surprise. Purchase activity also benefited from falling mortgage rates. The seasonally adjusted purchase index was up 4 percent and is now 23 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.

Mortgage Demand Up 38% From Last Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications was 38 percent higher last week than during the same week one year ago. Largely driven by refinance demand, the year-over-year improvement has benefited from mortgage rates remaining near record lows. But purchase demand is also up over last year. In fact, demand for loans to buy homes is now 13 percent higher year-over-year. Week-over-week results, on the other hand, look a little different. For example, last week’s results found a 2.6 percent drop in the number of requests for mortgage applications. Michael Fratantoni, MBA’s chief economist, said the United Kingdom’s decision to leave the European Union was behind some of the volatility. “Whether the impact of Brexit will be contained to the initial shock of the ‘Vote Leave’ victory or will have a longer-term impact on markets is unclear …” Fratantoni said. “MBA’s best guess at this point is that the impact on the mortgage market will be to keep mortgage rates lower for longer, leading to another pickup in refinance activity in the near future.” Last week, average rates varied depending on the type of loan. Interest rates for 30-year fixed-rate mortgages with conforming loan balances were down. So were rates on 15-year fixed-rate loans. Rates for FHA loans were unchanged from one week earlier and 30-year loans with jumbo balances increased slightly. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rates At Lowest Level In 3 Years

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell to their lowest level in three years last week. In fact, rates for 30-year fixed-rate mortgages with conforming loan balances dropped to levels last seen in May 2013. Rates for jumbo loan balances were also down, falling lower than they’ve been since January 2011. Lynn Fisher, MBA’s vice president of research, says mortgage rates declined due to concerns about events in Europe. “Rates fell on concerns that Britain may vote to leave the European Union later this week. Although beliefs about the likelihood of an exit have since moderated, the ‘Brexit’ vote promises to bring continued volatility to markets,” Fisher told CNBC. Because of the rate drop, refinance activity – which is more sensitive to rate fluctuations – rose 7 percent from the previous week. Purchase demand, on the other hand, slipped 2 percent from one week earlier. Still, overall demand for mortgage applications is now 35 percent higher than 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.

Mortgage Rates At Lowest Level In A Year

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to its lowest level since January 2015 last week. Rates also dropped for loans backed by the Federal Housing Administration, loans with jumbo balances, and 15-year fixed-rate mortgages. Michael Fratantoni, MBA’s chief economist, told CNBC rates moved lower based on May’s job report and concern about economic volatility overseas. “Markets reacted to the weaker than anticipated job market report by recalibrating their expectations regarding the Fed’s next move. Additionally, global investors concerned about the potential for Brexit and its implications have once again led to a flight to safety, driving down Treasury yields,” Fratantoni said. “As a result, conventional mortgage rates dropped to their lowest levels since 2015 last week, while FHA rates dipped to their lowest level since 2013.” But despite favorable rates, demand for mortgage applications declined, falling 2.4 percent from one week earlier. Analysts say the fact that demand dropped last week has little to do with mortgage rates and is more likely a reflection of the fact that buyer demand is outpacing the supply of homes available for sale this spring. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Gov’t Scorecard Tracks Housing Health

The U.S. Department of Housing and Urban Development releases their Housing Scorecard each month in an effort to track key housing market data and the results of the government’s foreclosure mitigation programs. The comprehensive report covers new and existing home sales, mortgage rates, prices, foreclosures, and more. In May, the scorecard once again found encouraging signs that the market has improved. For example, new home sales hit an eight-year high in April, rising 23.8 percent over one year earlier. At the same time, sales of previously owned homes also rose due to solid gains in the Midwest and Northeast. The gains are significant as it is evidence that there remains a high level of buyer demand, despite affordability concerns caused by higher prices and fewer homes available for sale this spring. Part of the reason for that may be because mortgage rates remain near three-year lows. Historically low mortgage rates have been helping ease the effects of sharp price increases and they continue to entice interested buyers. Also in the report, foreclosure starts and completions fell again in April, continuing a long, downward trend caused, in part, by rising home values. Still, despite the encouraging signs, the report cautions that there is still work to be done to help the housing market and underwater homeowners who are still struggling. More here.

Home Loan Demand Spikes As Buyers Return

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.

Rising Incomes Help Hopeful Home Buyers

The current housing market is a mixed bag. On the one hand, mortgage rates remain near record lows. At the same time, home price increases are causing affordability concerns. Additionally, home buyer demand is high but the number of homes available for sale is low. Because of this, recent results of Fannie Mae’s monthly Home Purchase Sentiment Index have been volatile. In March, sentiment hit an 18-month low. Then, according to the most recent release, it reached an all-time survey high in May. Partly, the increase in optimism was due to a 7 percent jump in the number of Americans who said their income was significantly higher than it was a year ago. Doug Duncan, Fannie Mae’s senior vice president and chief economist, says rising incomes and low mortgage rates could help home buyers facing higher prices and fewer choices. “Continued home price appreciation has been squeezing housing affordability, driving a two-year downward trend in the share of consumers who think it’s a good time to buy a home,” Duncan said. “The current low mortgage rate environment has helped ease this pressure, and fewer than half of consumers expect rates to go up in the next year. While the May increase in income growth perceptions could provide further support to prospective home buyers as the spring/summer home buying season gains momentum, the effect may be muted by May’s discouraging jobs report.” More here.

Competition Climbs Among Buyers’ Worries

A new survey of home buyers found the number who say their main concern is competition has nearly doubled since last November, rising from 11 to 19 percent in just seven months. But despite how quickly competition has emerged among buyers’ worries, it still trails affordability – which topped the list at 26 percent. Still, a lower-than-usual number of homes available for sale and high buyer demand means competition is increasingly a problem for home shoppers – and especially those on a budget. A bidding war can put buyers in the position of having to decide whether to break their budget or lose their chosen house. And the issue is especially pronounced on the lower end of the market where many first-time home buyers are searching for a starter home and a way out of high rents. “Though enticed by high rents and low mortgage rates to begin a home search, first-time buyers face a number of obstacles in today’s competitive market,” said Nela Richardson, chief economist for Redfin, who conducted the survey. “In many cities, starter homes have seen the largest price increases because the supply of affordable homes on the market is so low and the demand for these homes is so high.” Fortunately, the spring and summer sales season usually entices more current homeowners to put their homes up for sale, which could provide buyers some needed relief in the coming months. More here.

Mortgage Rates Mixed As Demand Falls

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for mortgage applications fell last week, dropping 4.1 percent from the week before. The decline included a 4 percent decrease in the refinance index and a 5 percent drop in demand for applications for loans to buy homes. Still, purchase application demand is 28 percent higher than the same week last year and mortgage rates remain near historic lows. Michael Fratantoni, MBA’s chief economist, told CNBC that some of the volatility in the mortgage market is due to uncertainty about whether or not the Fed will raise interest rates this month. “Market expectations for a June Fed hike have increased recently leading to a flattening of the yield curve, as short-term rates have risen more than longer-term rates,” Fratantoni said. “As a result, we saw an increase in rates for 15-year mortgages last week, even as rates on 30-year loans remained unchanged.” In fact, average mortgage rates fell for both 30-year fixed-rate mortgages with jumbo balances and loans backed by the Federal Housing Administration. On the other hand, rates for 30-year loans with conforming balances were unchanged from the week before and 15-year fixed-rate mortgages increased. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.