Refinance Index Archives

Mortgage Rate Drop Spurs Demand

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates fell again last week. 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 loans. The sharp drop brought rates for conforming and FHA loans to their lowest level since last spring and caused a spike in refinance activity. In fact, the Refinance Index increased 16 percent last week and pushed total mortgage application demand 9.3 percent above week-before levels. Michael Fratantoni, the MBAâ€™s chief economist, told CNBC that much of the demand was generated by jumbo borrowers, which are those with loan balances greater than $417,000. â€œJumbo borrowers are benefiting from fierce competition for these loans,â€ Fratantoni said. â€œThe 30-year fixed rate for jumbo loans dropped to its lowest level since April 2013 and is now 15 basis points below the rate for conforming loans.â€ The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. MoreÂ here.

Mortgage Rates Hold Steady From Last Week

According to the Mortgage Bankers Associationâ€™s Weekly Applications Survey, average mortgage rates were virtually unchanged last week from the week before. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was down slightly, while jumbo loans remained unchanged from the previous week. Rates on loans backed by the Federal Housing Administration saw a minor increase and 15-year fixed-rate loans fell. Overall, mortgage rates have seen little movement over the past three weeks. But, because rates have plateaued at a higher level, refinance demand is slowing. In fact, last weekâ€™s Refinance Index was down 6 percent from the week before. Michael Fratantoni, MBAâ€™s chief economist, told CNBC, refinance activity was down, even for a holiday week. â€œVolume always drops significantly during Thanksgiving week,â€ Fratantoni said. â€œHowever, even after adjusting for the holiday, with rates little changed last week, refinance volume slipped to its lowest level since late July.â€ On the other hand, demand for home purchase loans was up 8 percent. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. MoreÂ here.

Latest Survey Finds Mortgage Rates Down

According to the Mortgage Bankers Associationâ€™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 mortgages. The decline follows four consecutive weeks of increases. Despite lower rates, however, mortgage application demand fell from the previous week. In fact, the Refinance Index was down 5 percent and the Purchase Index â€“ which is a good indicator of future home sales â€“ was down 1 percent, though it remains 24 percent higher than at the same time last year. Michael Fratantoni, MBAâ€™s chief economist, told CNBC demand for higher priced homes is still outpacing applications for more affordable homes. â€œAverage purchase loan size climbed to a new survey high last week, as the higher end of the market continues to grow more quickly than the entry level,â€ Fratantoni said. The MBAâ€™s weekly survey covers 75 percent of all retail residential mortgage applications and has been conducted since 1990. MoreÂ here.

Mortgage Rate Increase Slows Demand

According to the Mortgage Bankers Associationâ€™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 â€“ which measures both refinance and purchase activity â€“ 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. â€œBetween the recent TILA-RESPA regulatory change and the Columbus Day holiday, mortgage application volume has been more volatile than normal,â€ Fratantoni said. â€œHowever, that appears to be settling down somewhat.â€ Also in the report, demand for loans to purchase homes was 23 percent higher than it was during the same week last year. The MBAâ€™s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. MoreÂ here.