Archives for May 2015

Mortgage applications decline at the end of May

Per the MBA:

Mortgage applications decreased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 22, 2015.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 2 percent compared with the previous week. The Refinance Index decreased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 1 percent from one week earlier. The unadjusted Purchase Index was essentially unchanged compared with the previous week and was 14 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 51 percent of total applications from 52 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 6.4 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.07 percent from 4.04 percent, with points increasing to 0.35 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.06 percent from 4.04 percent, with points increasing to 0.29 from 0.25 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

Continue reading – MBA


Mortgage Interest Rate News 05-27-2015

Mortgage interest rates remain below 4.00%….just barely.  The mortgage interest rate volatility we’ve seen since April continues as bond yields make sharp moves depending on the data/news story.  Europe appears to have the biggest influence on the bond market right now and mortgage rates will continue to see volatility as Europe struggles economically and how to best deal with the Greek situation.  Mortgage interest rates are still well below historical averages.

Mortgage Credit Loosens

Per MPA:

Mortgage credit availability was up slightly in April, according to new data from the Mortgage Bankers Association.

The MBA’s Mortgage Credit Availability Index (MCAI) increased o.5% to 122.0 last month. A decline in the MCAI means that lending standards are tightening, while an increase indicates loosening credit. The index was benchmarked at 100 in 2012.

Of the MCAI’s four component indices, the Government MCAI saw the greatest loosening of credit, rising 1.1% over the month of April. The Jumbo MCAI was up 0.8%, while the Conforming MCAI rose 0.2%. The Conventional MCAI saw slight credit tightening, down 0.6%.

Reas more on MPA

Mortgage Loan Volume 5-13-2015

Loan volume remains low right now despite 30 year fixed mortgage rates below 4.00%.  Recent articles suggest many current and potential homeowners are struggling to either refinance or purchase a home.  Student loan debt, and health care costs are playing a role in limiting some American’s that wish to either refinance or purchase with a 30 or 15 year fixed rate mortgage.  Another factor in low refinance and purchase volume is wages….wages for the most part are stagnant and have been for a while.

Mortgage Interest Rate News 05-13-2015

Last Friday we received a mortgage rate and bond friendly employment report.  Job and earnings growth was weak and thus bonds rallied while mortgage rates improved.  Monday; that all reversed course as the market has reversed the Friday gains and mortgage rates have quickly snapped back to pre-job report levels.  Europe continues to be a factor as volatility in the bond market is very high.  Lender’s are being very cautious about their rate sheets in case we see bond yields move higher from these levels.

Despite this recent move higher; mortgage rates remain below 4.00% (30 year fixed).