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Posts tagged 30 year fixed rate mortgages
Mortgage Refinance Applications Increase Slightly
Jun 2nd
The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending May 28, 2010.
Demand for loans to buy homes fell last week for the fourth straight week, holding 13-year lows, as the housing market adjusted to a selling environment without the federal tax credits.
The Mortgage Bankers Association’s index for mortgage loan application increased 0.9% from one week earlier, while the Refinance Index increased 2.4% from the previous week.
Purchase intentions have slumped following the April 30 deadline for a tax credit worth as much as $8,000. The incentive pulled house sales forward and triggered the largest monthly construction spending gain in nearly a decade.
Average interest rate for 30-year fixed-rate mortgages increased to 4.83% from 4.80%, with points decreasing to 1.05 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for 15-year fixed-rate mortgages decreased to 4.24% from 4.25%, with points increasing to 1.11 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
The average contract interest rate for one-year adjustable-rate mortgages (ARM) increased to 6.96% from 6.83%, with points decreasing to 0.27 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
“With another week of historically low mortgage rates, the trend from the prior three weeks continued, as refinance applications increased while purchase applications dropped. Purchase applications are now almost 40 percent below their level four weeks ago, while the refinance share, at 74 percent, is at its highest level since December,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.
“In addition, the ARM share dropped last week to its lowest level since March of this year, as borrowers took the opportunity to lock in at historically low fixed mortgage rates.”
MBA: Mortgage Purchase Applications lowest level since April 1997
Jun 2nd
The MBA reports: Mortgage Refinance Applications Increase Slightly, Purchase Applications Decline Further
The Refinance Index increased 2.4 percent from the previous week. This was a smaller increase than in previous weeks, but was still the fourth consecutive weekly increase for the Refinance Index and it remains at its highest level since October 2009. The seasonally adjusted Purchase Index decreased 4.1 percent from one week earlier. The Purchase Index decreased for the fourth consecutive week and is currently at the lowest level since April 1997.
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The average contract interest rate for 30-year fixed-rate mortgages increased to 4.83 percent from 4.80 percent, with points decreasing to 1.05 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 1990.
The purchase index has declined sharply following the tax credit related buying, suggesting home sales will fall sharply too. Pending home sales for April will be announced today and a large increase is expected, however May pending home sales will be much lower.
As the Michael Fratantoni, MBA’s Vice President of Research and Economics noted two weeks ago: “The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season.”
Mortgage Refinance Applications Continue to Increase
May 26th
The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending May 21, 2010.
Mortgage applications rose last week by the most in a month as homeowners took advantage of borrowing costs close to a record low to refinance.
Mortgage applications to refinance home loans jumped to a seven month high last week as rates neared record lows, but purchase demand remained stuck at a 13-year low.
The Mortgage Bankers Association’s applications index increased by 11.3%, followed a 1.5% drop the previous week. Mortgage refinancing surged 17%, the most since February. Purchase applications fell to the lowest level since 1997.
“Refinance application volume jumped last week as continuing financial market turmoil related to the budget crises in Europe extended the opportunity for homeowners to lock in at historically low mortgage rates,” said Michael Fratantoni, MBA’s Vice President of Research and Economics.
“In contrast, purchase applications fell further this week, following last week’s sharp decline, keeping the purchase index at 13-year lows.”
Average interest rate for 30-year fixed-rate mortgages decreased to 4.80% from 4.83%, with points remaining constant at 1.08 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for 15-year fixed-rate mortgages increased to 4.25% from 4.19%, with points decreasing to 1.00 from 1.36 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for one-year adjustable-rate mortgages (ARM) increased to 6.83% from 6.81%, with points increasing to 0.38 from 0.37 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
MBA: Mortgage Purchase Applications at 13 Year Low
May 26th
The MBA reports: Mortgage Refinance Applications Continue to Increase, Purchase Applications Decline Further
The Market Composite Index, a measure of mortgage loan application volume, increased 11.3 percent on a seasonally adjusted basis from one week earlier …The Refinance Index increased 17.0 percent from the previous week. This third consecutive increase marks the highest Refinance Index recorded in the survey since October 2009. The seasonally adjusted Purchase Index decreased 3.3 percent from one week earlier and is the lowest Purchase Index observed in the survey since April 1997.
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“Refinance application volume jumped last week as continuing financial market turmoil related to the budget crises in Europe extended the opportunity for homeowners to lock in at historically low mortgage rates,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “In contrast, purchase applications fell further this week, following last week’s sharp decline, keeping the purchase index at 13-year lows.”
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The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.80 percent from 4.83 percent, with points remaining constant at 1.08 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 30-year fixed-rate recorded in the survey since the week ending November 27, 2009.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 1990.
There was a spike in purchase applications in April, followed by a decline to a 13 year low last week. As Fratantoni noted last week: “The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season.”
Mortgage Purchase Applications Fall
May 19th
While Refinance Applications Increase
The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending May 14, 2010.
Mortgage loan application volume, decreased 1.5% on a seasonally adjusted basis from one week earlier.
Mortgage Refinance Index increased 14.5% from the previous week and the seasonally adjusted Purchase Index decreased 27.1% from one week earlier.
Average interest rate for 30-year fixed-rate mortgages decreased to 4.83% from 4.96%, with points increasing to 1.08 from 0.91 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for 15-year fixed-rate mortgages decreased to 4.19% from 4.32%, with points increasing to 1.36 from 0.81 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for one-year adjustable-rate mortgages (ARM) decreased to 6.81% from 6.86%, with points increasing to 0.37 from 0.35 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
“Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks.”
MBA: Mortgage Purchase Applications ‘Plummet’ to 13 Year Low
May 19th
The MBA reports: Mortgage Purchase Applications Plummet While Refinance Applications Increase in Latest MBA Weekly Survey
The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from one week earlier….The Refinance Index increased 14.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 27.1 percent from one week earlier. This is the lowest Purchase Index observed in the survey since May of 1997. …
“Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “However, refinance borrowers did react to these lower rates, with refi applications up almost 15 percent, hitting their highest level in nine weeks.”
… The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent, with points increasing to 1.08 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 1990.
There was a spike in purchase applications in April, followed by a decline to a 13 year low last week. As Fratantoni noted: “The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season.”
Mortgage Applications Increased 3.9%, Refinancing Surge
May 12th
The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending May 7, 2010.
Mortgage applications rose last week, led by a rebound in refinancing as long-term borrowing costs dropped below 5% for the first time in two months.
The Market Composite Index, a measure of mortgage loan application volume, increased 3.9% on a seasonally adjusted basis from one week earlier. The refinance index climbed 15%, while the purchase index fell 9.5% in the first week since the end of a government incentive.
Average interest rate for 30-year fixed-rate mortgages decreased to 4.96% from 5.02%, with points decreasing to 0.91 from 0.92 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for 15-year fixed-rate mortgages decreased to 4.32% from 4.34%, with points increasing to 0.81 from 0.80 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for one-year adjustable-rate mortgages (ARM) decreased to 6.86% from 7.03%, with points increasing to 0.35 from 0.28 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
“The recent plunge in rates on US Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefitted US mortgage borrowers last week. Rates on 30-year mortgages dropped to their lowest level since mid-March. As a result, refinance applications for conventional loans jumped, hitting their highest level in six weeks,” said Michael Fratantoni, Mortgage Bankers Association’s Vice President of Research and Economics.
“In contrast, purchase applications fell almost 10 percent in the first week following the expiration of the homebuyer tax credit, as the tax credit likely pulled some sales into April that would otherwise have occurred in May or later.”
The drop in applications for purchase financing may be the first sign that the expiration of a tax credit worth as much as $8,000 will depress demand in coming months. The outlook for home sales later in the year will depend on improvement in jobs.
The tax credit for first-time home buyers, which was extended in November 2009 to include some current owners, required contracts be signed by April 30 and settled by June 30.
MBA: Mortgage Purchase Applications Decrease
May 12th
The MBA reports: Refinance Applications Surge, Purchase Applications Drop in Latest MBA Weekly Survey
The Market Composite Index, a measure of mortgage loan application volume, increased 3.9 percent on a seasonally adjusted basis from one week earlier. …The Refinance Index increased 14.8 percent from the previous week and the seasonally adjusted Purchase Index decreased 9.5 percent from one week earlier. …
“The recent plunge in rates on US Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefitted US mortgage borrowers last week. Rates on 30-year mortgages dropped to their lowest level since mid-March. As a result, refinance applications for conventional loans jumped, hitting their highest level in six weeks,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “In contrast, purchase applications fell almost 10 percent in the first week following the expiration of the homebuyer tax credit, as the tax credit likely pulled some sales into April that would otherwise have occurred in May or later.”
… The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.96 percent from 5.02 percent, with points decreasing to 0.91 from 0.92 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 1990.
We expected the Purchase Index to increase in April – and then turn down in May since the tax credit expired at the end of April (buyers need to close by June 30th). The tax credit related peak in purchase activity is probably behind us.
As Fratantoni noted, the decline in mortgage rates (below 5% again on a 30 year fixed) resulted in a surge in refinance applications last week.
Home Loan Demand Up in Tax Credit’s Last Days
May 5th
The Mortgage Bankers Association released its Weekly Mortgage Applications Survey for the week ending April 30, 2010. Demand for loans to buy homes raced to a seven-month high last week for federal tax credits, Mortgage Bankers Association data showed on Wednesday.
Home purchase loan applications jumped 13% in the week ended April 30 to the highest level since early October, overshadowing a 2.1% drop in refinancing demand. Total mortgage applications rose by a seasonally adjusted 4%, the mortgage trade group reported.
“Purchase application activity continued to increase in the last week of the homebuyer tax credit program,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase applications were up 13 percent over the previous week and almost 24 percent over the last month, driven by significant increases in both conventional and government purchase applications. We also saw the Government share of applications for purchasing a home increase to over 50 percent of all purchase applications last week, which is the highest in two decades.”
Average interest rate for 30-year fixed-rate mortgages decreased to 5.02% from 5.08%, with points increasing to 0.92 from 0.91 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for 15-year fixed-rate mortgages decreased to 4.34% from 4.38%, with points decreasing to 0.80 from 0.93 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Average interest rate for one-year adjustable-rate mortgages (ARM) remained unchanged at 7.03%, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.
Eligible borrowers seeking to take advantage of federal tax credits of $8,000 for first-time buyers and $6,500 for existing homeowners were required to sign contracts by April 30 and to close on their loans by June 30.
Housing demand is likely to drop off after the recent flurry of sales ahead of the tax credit expiration.
Sales of new homes jumped almost 27% in March, and sales of existing home increased by 6.8%. The number of previously owned homes in contract to be sold, known as pending home sales, rose 5.3% to a five-month high in March.
MBA: Mortgage Purchase Applications Highest Since October
May 5th
The MBA reports: Purchase Applications Continue to Increase, Refinance Activity Declines in Latest MBA Weekly Survey
The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier. …The Refinance Index decreased 2.1 percent from the previous week and the seasonally adjusted Purchase Index increased 13.0 percent from one week earlier. This is the third consecutive weekly increase in purchase applications and the highest Purchase Index recorded in the survey since the week ending October 2, 2009. …
“Purchase application activity continued to increase in the last week of the homebuyer tax credit program,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Purchase applications were up 13 percent over the previous week and almost 24 percent over the last month, driven by significant increases in both conventional and government purchase applications. We also saw the Government share of applications for purchasing a home increase to over 50 percent of all purchase applications last week, which is the highest in two decades.”
… The average contract interest rate for 30-year fixed-rate mortgages decreased to 5.02 percent from 5.08 percent, with points increasing to 0.92 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
Click on graph for larger image in new window.
This graph shows the MBA Purchase Index and four week moving average since 1990.
This is the highest level for the purchase index since last October. The index will probably turn down in the next week or two since the tax credit expired last Friday (buyers need to close by June 30th).
