Blog
Mortgage Application Dives Further into 12-Year Low
After falling to it’s lowest level in more than 12 years last week, the MortgagernBankers Association’s (MBA) Market Composite Index fell another 6.3 percent this week. The index, a measure of application volume for both purchases and refinances, moved from from 374.6 during the week ended December 13 to 351.1 on the week ended Dec 20. It’s important to remember that there is typically a substantial dip into late December despite the data being seasonally adjusted. </p
“Following the Federal Reserve’s taper announcement, mortgage application volume dropped again last week, with rates increasing and refinance application volume falling to its lowest level since November 2008,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Purchase application volume was weak too, continuing to run more than ten percent below last year’s pace. Notably, government purchase application volume is almost 25 percent below where it was at this time last year, with the larger drop compared to conventional purchase likely due to the increase in FHA premiums over the course of the year.”</p
The MBA’s Refinance Index was down 8rnpercent from the previous week and refinance share of all activityrnreturned to 65 percent after rising to 66 percent last week. rnThe seasonally adjusted Purchase Index decreased 4 percent from last week’s 1-year low 174.7 to 168.6 in the current week. Thernunadjusted Purchase Index decreased 5 percent and was 11 percent lower than thernsame week one year ago.rn</p
Refinance Index vs 30 Yr Fixed</p
ChartManager.loadChart(‘refiappschart’, ‘RefiMtgAppChart’);
</p
Purchase Index vs 30 Yr Fixed</b</p
ChartManager.loadChart(‘purchaseappschart’, ‘PurchaseMtgAppChart’);
</p
Mortgage rates continued higher. rnThe 30-year fixed-rate mortgage (FRM) with conforming balances ofrn$417,000 or less had an average contract rate of 4.64 percent with 0.41 points, the highestrnsince September. Thernprevious week the rate was 4.62 percent with 0.38 point. The effective rate also increased. </p
The jumbo 30-year FRM (balances over $417,000) had an averagerncontract rate of 4.63 percent, an increase of 2 basis points from the previousrnweek, and points remained unchanged at 0.24. rnThis was also the highest contract rate since September and therneffective rate increased as well.</p
30-year fixed rate mortgages backed by thernFHA rose from the previous week with the contract rate at 4.29 percentrncompared to 4.35 percent. Points decreasedrnto 0.24 from 0.32. </p
Average rates for 15-year FRM increased to 3.74 percent, the highest since September, though points decreased from 0.35 to 0.29.</p
Both thernaverage contract rate and effective rate of the 5/1 ARM increased with therncontract rate rising 6 basis points to 3.26 percent though points decreased to 0..39 from 0.42.</p
Application volume and rate information are compiled by MBA fromrnits Weekly Mortgage Application Survey which has been conducted since 1990. Rates are quoted for loans with an 80 percentrnloan-to-value ratio and points include the origination fee. Base period and value for indexes is Marchrn16, 1990=100.
All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
About the Author
devteam
Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.
See all blogsLatest Articles
By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...
Late-Stage Delinquencies are SurgingAug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...
Published by the Federal Reserve Bank of San FranciscoIt was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...
Comments
Leave a Comment