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)

Mortgage Applications Fall as Rates Surge!

Mortgage applications for home purchases and refinancing continued to fall, dropping 11.5 percent last week, amid rising mortgage rates. Interest rates rose above 4 percent for the first time in a year, according to the Mortgage Bankers Association.

Applications for refinancings saw the largest declines, with applications falling 15 percent last week, the MBA reports. Meanwhile, applications for home purchases, an indicator for future home sales, fell 1.6 percent last week.

Many analysts blame the decreasing applications on rising mortgage rates. The fixed 30-year mortgage rate averaged 4.07 percent for the week ending May 31, its highest level since April 2012, the MBA reports. Fed chairman Ben Bernanke recently indicated that the Fed may soon scale back its bond purchase program, which has helped to keep mortgage rates near all-time record lows.

Source: “Mortgage applications drop as rates surge: MBA,” Reuters (June 5, 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 Surges” last week!

Loan requests for home purchases — viewed as a leading indicator of future home sales — surged 6.7 percent last week, the Mortgage Bankers Association reports. Applications for refinancing also rose, jumping 8 percent.

MBA’s index of mortgage application demand had declines six of the past nine weeks as mortgage rates have inched higher. Last week, mortgage rates dropped for the first time in three weeks, helping to lift loan demand, the MBA reports.

MBA’s overall index of mortgage application activity, which reflects applications for home purchases and refinancing, increased 7.7 percent for the week ending March 22.

The MBA reports that the 30-year fixed-rate mortgage averaged 3.79 percent during the week, down from 3.82 percent the week prior.

Source: “Mortgage applications rebounded last week as rates fell: MBA,” Reuters (March 27, 2013)

Loan Demand Falls as “Rates Reach 7-Month Highs”

For the second consecutive week, mortgage applications fell as interest rates climbed to seven-month highs, the Mortgage Bankers Association reports in its weekly survey.

Overall mortgage application activity dropped 7.1 percent in the week ending March 15. Refinancings, which make up the biggest bulk of that activity, dropped 8 percent last week. Applications for home purchases, viewed as a leading indicator of future home sales, dropped 3.9 percent.

Meanwhile, 30-year fixed-rate mortgages averaged 3.82 percent during the week, the highest level since last August, the MBA reports. Your market comments?

Source: “U.S. Mortgage Applications Fell Again Last Week, Rates Up,” Reuters (March 20, 2013)

As Interest Rates Rise, Mortgage Applications Drop!

Loan demand dropped last week as interest rates rose for the fourth straight week, the Mortgage Bankers Association reports. 

The index measuring mortgage application activity, which includes applications for refinancing and home purchases, fell 6.4 percent for the week ending Feb. 8.

Separated out, refinancing applications during the week dropped 5.5 percent while applications for home purchases, viewed as a leading indicator of home sales, fell 9.5 percent. 

The 30-year fixed-rate mortgage averaged 3.75 percent last week, up from 3.73 percent the previous week. The 30-year rate is at its highest level since September 2012, according to the MBA. 

Source: “U.S. Mortgage Applications Slumped Last Week as Rates Rose,” Reuters (2/13/13)

Fewer Home Owners Behind on Payments

“Good News” to share with you! The number of home owners behind on their mortgage payments dropped to the lowest level in three years, according to a report of data from the fourth quarter of 2011 released by the Mortgage Bankers Association. 

“Mortgage performance is also improving faster than the overall economy,” says Jay Brinkmann, MBA’s chief economist. (We’re finding this is not true with some lenders.)

According to MBA, 7.6 percent of residential mortgages were at least 30 days past due on their payments in the fourth quarter of 2011. Last year, the percentage was 8.3, and the peak of 10 percent was reached in early 2010. Mortgage delinquencies usually hover around 5 percent in more stable markets. Let’s hope this trend continues.

Still, while the lower delinquencies serve as an important sign needed for a healing housing market, MBA still cautions that the number of loans in foreclosure remains high. About 4.4 percent of all loans were in foreclosure in the fourth quarter. The peak reached one year earlier was 4.6 percent.

Source: “Mortgage Delinquencies Hit Three-Year Low,” The Wall Street Journal (2/16/12)