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Applications Decline Nearly 10%:
According to the Mortgage Bankers Association mortgage applications dropped 9.8% (seasonally adjusted) in the their most recent survey; a significant decline even for the holidays. Despite mortgage rates moving down to nearly 1 year lows; homeowners and homebuyers seemed to shy away from starting a new loan application. Un adjusted it dropped 46% compared with two weeks ago.
Applications from current homeowners looking to refinance their current mortgage decreased 12% from the prior period 9 (two weeks ago). The holidays is usually one of the slowest times of the year when it comes to people applying for a mortgage. This is not a big surprise and normally as the weeks go on in the new year applications start to increase.
Applications for those looking to purchase a new home decreased 8%, seasonally adjusted. The unadjusted decline was 46%. Generally speaking purchase applications are higher during the holidays (compared to refinance applications).
Statement From Joel Kan:
Per Joel Kan, Associate V.P. for the Mortgage Bankers Association: “Even with lower borrowing costs, both purchase and refinance applications decreased over the two-week holiday period, as both conventional and government applications dropped. Part of the decline in mortgage applications was possibly because of the government shutdown, as concerns over delays in FHA application processing times likely contributed to the weakness in activity.”
The refinance share of the total applications receives was 42.7% (down from 43.6%), purchase applications came in at 57.3% of all applications. Fixed rate mortgages dominated the share as they typically do as adjustable rate mortgage applications only totaled 7.6% of all applications. FHA applications came in at 10% and VA applications came in at 11%.
Average Rate Conforming:
The average rate for all of the 30 year fixed conforming loan applications was 4.84% with an average of 0.47 loan origination and discount points. That is significantly higher than what JB Mortgage Capital, Inc. is offering. See our fixed rate mortgage options on our mortgage rates page for the most current mortgage rates and news.
The average rate for all of the 15 year fixed conforming loan applications as 4.125% with 0.50 costs (loan origination and discount points. Like the 30 year fixed rate option; JB Mortgage Capital, Inc. is well below the “average” as we are seeing 15 year fixed rates below 4.00%.
Will Things Pick Up:
Hard to say however it should. Mortgage rates are moving down and typically mortgage volume increases during the first 4 -6 weeks on a new year. The size of the pickup may be dependent on how low mortgage rates stay. If we see 30 year fixed mortgage rates move below 4% (paying 1 point) then you may see a sizable pick up in mortgage applications.
JB Mortgage Capital, Inc.:
If you are thinking of purchasing a new home or refinancing a current mortgage please be sure to contact us for a no cost/no obligation quote. We offer mortgage rates well below the industry average, the latest technology so your mortgage closes fast and we offer personal one-on-one personal service. This means from application to closing your’ll work directly with Loan Officer Kevin O’Connor. He has over 14 years of experience and is very knowledgeable about how to get the lowest rate at the best terms. You can contact him directly (no extension needed) at 1-800-550-5538 or use the “Contact Us” form on your website.