The Race Is On to Snag a Low Rate

Borrowers are getting spooked by rising rates and they’re rushing to lock in rates before any further increases. That’s pushing mortgage application volume higher, increasing a seasonally adjusted 3.3 percent week over week, the Mortgage Bankers Association report. Buyers are also increasingly turning to adjustable-rate mortgages to try to get more savings in their monthly payments too.

“Mortgage rates increased last week as remarks by several key Federal Reserve officials strongly signaled a March rate increase,” says Joel Kan, an MBA economist. “This was further supported by a few solid economic data releases, including GDP, inflation, and manufacturing gauges.”

The 30-year fixed-rate mortgage increased to 4.36 percent from 4.30 percent the previous week, the MBA reports.

Source: “Borrowers Rush to Beat Rising Rates, Pushing Mortgage Volume 3.3% Higher,” CNBC (March 8, 2017)

Rising Mortgage Rates Nip at Loan Demand

“As incoming economic data reassured investors regarding U.S. growth, and financial markets returned to viewing a December Fed hike as increasingly likely, mortgage rates rose to their highest level in a month last week,” says Michael Fratantoni, the MBA’s chief economist. “Total and refinance application volume dropped to their lowest levels since June as a result.”

Refinancings have been dropping for several weeks now, with an 8 percent drop last week. Mortgage applications for home purchases, on the other hand, posted a smaller drop at 3 percent week over week. Purchase applications are still 27 percent higher than a year ago.

Source: “Mortgage Applications Down 6% as Rising Rates Take a Toll,” CNBC (Oct. 12, 2016)

Loan Demand Drops Despite Low Rates

Total mortgage activity – including refinances and home purchases – dropped 4 percent last week on a seasonally adjusted basis even though mortgage rates are near all-time lows, the Mortgage Bankers Association reported Wednesday.

“A strong job market and low rates continue to support home sales,” says Michael Fratantoni, MBA’s chief economist. MBA reports the average on the 30-year-fixed rate mortgage remains near all-time lows, decreasing last week to 3.64 percent (from 3.65 percent the previous week).

Source: “Mortgage Applications Fell 4% Even as Rates Sit Near Record Lows,” CNBC (Aug. 17, 2016)

Home Buyers Growing Wary From Interest Rate Rises ?

Total mortgage applications, including both refinancing and home-purchase loans, dipped 1.5 percent last week from the week prior on a seasonally adjusted basis as mortgage rates continued to tick up, the Mortgage Bankers Association reports in its weekly mortgage market survey.

Applications for home purchases, viewed as a gauge of future homebuying activity, dropped 4 percent from the previous week to its lowest level since April. Yet, home purchase applications are still 11 percent higher than the same week one year ago.

“The drop this week may indicate borrowers being wary of the recent runup in mortgage rates,” said Mike Fratantoni, MBA’s chief economist.

Source: “Weekly Mortgage Applications Drop 1.5% as Rates Rise,” CNBC (May 20, 2015)

Lower Rates Trigger Jump in Mortgage Applications

Mortgage applications surged 12 percent last week on lower interest rates, the Mortgage Bankers Association reports.

The refinance index grew 11 percent last week, according to the MBA’s seasonally adjusted index.

Applications for home purchases — viewed as a leading gauge of future home buying — edged up 12 percent for the week.

Meanwhile, mortgage rates fell last week, with the 30-year fixed-rate mortgage dropping from 4.72 percent to 4.66 percent last week.

Source: “Mortgage Applications Surge on Lower Rates,” CNBC (Jan. 15, 2014) and “U.S. Mortgage Applications Volume Jumped Last Week,” The Wall Street Journal (Jan. 15, 2014)

Refinancing Demand “Slips to 2-Year Low”

Mortgage rates are on the rise, prompting fewer home owners to refinance their mortgages, but the increase doesn’t appear to deter home buyers yet.

The lower refinance demand caused overall mortgage applications to drop 2.6 percent last week, the Mortgage Bankers Association reported Wednesday. The MBA’s survey covers about 75 percent of the residential mortgage market.

Meanwhile, loan applications for home purchases — viewed as an indicator of future home sales — inched up slightly by 0.5 percent for the week ending July 12.

Mortgage rates were at a two-year high last week, with the 30-year fixed-rate’s averaging 4.68 percent — the highest level since July 2011, the MBA reports.

Source: “Higher mortgage rates push refinancing applications to 2-year low,” Reuters (July 17, 2013)

Real Estate ‘Loan Demand Rises’ as Rates Fall!

Mortgage applications climbed 2 percent last week as several key interest rates dropped, the Mortgage Bankers Association reports.

Mortgage applications for refinancing, which make up the biggest bulk of MBA’s index, rose 3 percent for the week ending April 26, reaching its highest level since January. Meanwhile, mortgage applications for home purchases fell last week by 1.4 percent compared to a week earlier.

“Low interest rates have attracted new buyers and persuaded many home owners to refinance their mortgages,” Dow Jones reports. “However, tightened credit restrictions still bar many borrowers from filing loan applications.”

The 30-year fixed-rate mortgage averaged 3.6 percent last week, its lowest rate since December, MBA reports.

Source: “U.S. Mortgage Applications Up 2%,” Dow Jones Newswires (May 1, 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

Mortgage Applications “Continue to Fluctuate”

Despite interest rates well below 5 percent, mortgage applications continue to be in flux this month.

Loan applications increased 2.7 percent for the week ending March 18, after dropping the previous week. Earlier this month, mortgage applications posted a 15 percent drop, according to the Mortgage Bankers Association.

The unadjusted purchase index for mortgage applications increased 3 percent this week compared to the week prior. However, the purchase index remains down 15.3 percent compared to the same week a year ago.

Meanwhile, refinancing activity mostly stayed stable this week at 66.4 percent of the total applications, MBA reports.

Source: “Mortgage Applications Remain in Flux, Rise 2.7%,” HousingWire (March 23, 2011) 

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Mortgage Applications Rise

Applications to purchase homes rose 5.5 percent last week compared to the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association weekly survey.

On an unadjusted basis, purchases increased 3.1 compared over the previous week. This was the third consecutive week that purchase applications rose. They are at the highest level since May.

“The increases in purchase applications we have seen over the past couple of weeks align with the better than expected news from October’s employment report and other data indicating some improvement in the economy’s growth prospects,” says Michael Fratantoni, MBA’s vice president of research and economics.

Mortgage rates held steady:

· 30-year fixed-rate mortgages remained unchanged at 4.28 percent.
· 15-year fixed-rate remained unchanged at 3.64 percent.

Source: Mortgage Bankers Association (11/10/2010)

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