Home Loan Demand Dips As ‘Interest Rates Rise’

A sharp rise in mortgage rates dampened mortgage application volume last week, the Mortgage Bankers Association reports. Total mortgage application volume for both refinancings and home purchases fell 3.5 percent on a seasonally adjusted basis for the week ending May 8. Still, volume is 14 percent higher than a year earlier.

Broken out, applications for refinancings attributed to most of the drop in loan demand last week. Refinancing applications fell 6 percent week-over-week and have fallen 16 percent in the past four weeks alone, MBA reports. Applications for home purchases, which are viewed as a leading indicator of future home sales, mostly held steady last week, down just 0.2 percent from the previous week. Applications for home purchases are 12 percent higher than a year earlier.

MBA reports that the 30-year fixed-rate mortgage rose to 4 percent last week; it had averaged 3.93 percent the week prior.

Source: “Weekly Mortgage Applications Fall 3.5% as Rates Rise,” CNBC (May 13, 2015)

‘Mortgage Applications Rebound’ After Big Fall

Loan demand ticked up last week, rebounding after last week’s slump in mortgage applications that plunged 12.8 percent, the Mortgage Bankers Association reports.

Applications for refinancing and home purchases rose 1 percent for the week ending Dec. 6. Broken out, refinance applications increased 2.1 percent, while applications for home purchases — viewed as a leading gauge for future home sales — rose 0.9 percent during the week.

The MBA reports that the average 30-year fixed-rate mortgage increased to its highest level since late September, averaging 4.61 percent last week. The prior week 30-year rates had averaged 4.51 percent. Fifteen-year fixed-rate mortgages also increased, rising to 3.66 percent from 3.56 percent over the prior week.

Source: “U.S. MBA Mortgage Applications Index Increased 1% Last Week,” Bloomberg (Dec. 11, 2013)

Home Loan Demand “Reverses Course”

Following a 15 percent surge in mortgage applications, demand for home loans fell for the week ending March 8, the Mortgage Bankers Association (MBA) reports in its weekly mortgage market surveyed. Mortgage rates inched up this week, decreasing demand for home loans, MBA says.

The organization’s mortgage market index, which measures loan demand for refinancing and home purchases, dropped 4.7 percent for the week. Broken out, refinancing application demand fell 5.2 percent while applications for home loans — viewed as a leading indicator of future home sales — dropped 2.5 percent.

Meanwhile, the 30-year fixed-rate mortgage reached its highest average in more than six months, averaging 3.81 percent. Recent data that revealed job growth was stronger in February than expected caused mortgage rates to inch higher, according to MBA.

Source: “Mortgage Applications Decreased Last Week as Rates Spiked,” Reuters 3/13/13