Mortgage Applications 9-9-15

The resent rally in mortgage applications came to end as rates inched up ever so slightly in early September.  Refinance application fell 10% and applications to purchase new and existing homes only fell 1%. Per MBA the total volume fell 6.2 percent on a seasonally adjusted basis for the week ending September 4 versus the previous week (Mortgage Bankers Association).

Mortgage rates still remain relatively low compared to last year and the good news is we’ve seen stability return to the Mortgage Backed Securities (MBS) market.  June and July were marked by serious volatility which is never good for mortgage rates.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances increased to 4.10 percent from 4.08 percent, with points increasing as well.  This move was very small however it was enough to cause a significant slow down in refinance mortgage applications.