Housing update: Rates down, refinancing up


Current WeekPrevious week
Mortgage Composite Index
+4.0%
+8.2%
Purchase Index
+0.3%
+6.7%
Refinance Index
+6.0%
+9.0%
Refinance Apps
63.1%
62.7%
30 Year Mortgage Rates
4.67%
4.76%

Look what happens when the mortgage rates fall.  Over the course of the last week, mortgage rate have dropped almost 10 bps on the 30 year.  The 30-yr is down 15 bps over 2 weeks from when the 10-yr was 4.85%.  Refi apps shot up. 

Mortgage applications rose for both purchases, up 6.7%, and refinancing, up 9.0%. The purchase index has gained about 1/2 % over the past four weeks which points to badly needed improvement for home sales. Thirty-year mortgage rates, at 4.67% in the latest week, have fallen more than 30% points over the past month.   Via MBA:
Mortgage applications increased 8.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending May 6, 2011.


The Market Composite Index, a measure of mortgage loan application volume, increased 8.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 8.3 percent compared with the previous week. The Refinance Index increased 9.0 percent from the previous week, and is at its highest level since the week ending March 18, 2011. The seasonally adjusted Purchase Index increased 6.7 percent from one week earlier. The unadjusted Purchase Index increased 7.1 percent compared with the previous week and was 25.8 percent lower than the same week one year ago.

“Rates dropped again last week as the Federal Reserve continued its QE2 asset purchase program. The 30-year fixed mortgage rate is now 46 basis points below its 2011 peak, and has decreased for four straight weeks by a total of 31 basis points,” said Michael Fratantoni, MBA’s Vice President of Research. “Over this four week span, the refinance index has increased by about 18 percent. Despite the recent increases however, refinance application volumes remain more than 50 percent below levels seen last fall.”

The four week moving average for the seasonally adjusted Market Index is up 2.9 percent. The four week moving average is up 0.4 percent for the seasonally adjusted Purchase Index, while this average is up 4.3 percent for the Refinance Index.

The refinance share of mortgage activity increased to 63.1 percent of total applications from 62.7 percent the previous week. The refinance share is at its highest level since the week ending March 25, 2011. The adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent from 6.7 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.67 percent from 4.76 percent, with points increasing to 1.10 from 0.75 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The 30-year rate is at its lowest since December 2010. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.81 percent from 3.96 percent, with points increasing to 1.05 from 0.82 (including the origination fee) for 80 percent LTV loans. The 15-year rate is at its lowest since November 2010. The effective rate also decreased from last week.

Mortgage applications increased 5.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending April 15, 2011.

The Market Composite Index, a measure of mortgage loan application volume, increased 5.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 5.9 percent compared with the previous week. The Refinance Index increased 2.7 percent from the previous week. The seasonally adjusted Purchase Index increased 10.0 percent to its highest level since December 3, 2010, driven largely by a 17.6 percent increase in Government purchase applications. The unadjusted Purchase Index increased 10.9 percent compared with the previous week and was 11.4 percent lower than the same week one year ago.

“Purchase application volume jumped last week largely due to another sharp increase in applications for government loans. Borrowers were likely motivated to apply for loans before the scheduled increase in FHA insurance premiums,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “Refinance activity increased somewhat, as rates dropped to their lowest level in a month towards the end of the week.”

The four week moving average for the seasonally adjusted Market Index is down 2.9 percent. The four week moving average is up 2.5 percent for the seasonally adjusted Purchase Index, while this average is down 5.7 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 58.5 percent of total applications from 60.3 percent the previous week. This is the lowest refinance share since May 7, 2010. The adjustable-rate mortgage (ARM) share of activity increased to 6.5 percent from 5.9 percent of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.98 percent, with points increasing to 1.07 from 0.93 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.07 percent from 4.17 percent, with points decreasing to 1.02 from 1.22 (including the origination fee) for 80 percent LTV loans. The effective rate also decreased from last week.






Via

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