Archive for MBA Mortgage Report
Home Mortgage Refinancing Activity Rises 17%
Posted by: | CommentsIn their weekly mortgage rate report, the Mortgage Bankers Association indicated that home mortgage refinancing activity had risen17% from the previous week. This is great news if you were considering refinancing your mortgage.
The report also mentioned that home purchase loan applications made up less than 20% of the weekly volume of loan applications. This is another sign that the housing sector remains sluggish. Home buyers are clearly not motivated enough to finance a new home even as mortgage rates have fallen to historic levels. Last week the average 30-year home loans with fixed rates increased to 4.6% from 4.57%, according to the MBA. Clearly, low rates alone aren’t going to bring home buyers back to the market. As we’ve said before the employment numbers need to get better.
That’s because investors have begun paying more for mortgage bonds than in the past, enabling lenders to cover some home refinance costs that borrowers would traditionally bear. Some economists are holding on to their hopes that mortgage refinancing is the second best way to stimulate the economy behind new jobs. However some insiders are not confident that another mortgage refinancing wave will have much of an impact on our nation’s recovery. While it can put money into borrowers’ pockets, some homeowners are using low refinance rates to consolidate debt, by refinancing into home loans with shorter terms and knocking off several years of mortgage payments.
Mortgage Refinancing Applications Drop
Posted by: | CommentsWith mortgage refinancing activity rising each week, we were bound to see a drop one of these days and we finally did. The MBA reported that loan applicants seeking home refinancing declined to 78% last week from 79.4% the prior week, which was the highest level since April 2009. The average mortgage refinance rate on a 15-year fixed mortgage rose to 4.12% from 4.05%, and the interest rate on a one-year adjustable home loan fell to 7.15 % from 7.17 %
The Mortgage Bankers Association’s index fell 4.4% in the week ended July 23, the Washington-based group said today. The mortgage refinance measure fell 5.9% from the prior week’s one-year high, but the home purchase index did increase 2%. The average mortgage refinance rate with a 30-year fixed rate increased to 4.69% from 4.59% the prior week, which was the lowest since data began in 1990.
FHA Mortgage Refinance Applications Jump
Posted by: | CommentsThe Mortgage Bankers Association released their Weekly Mortgage Rate Report that indicated that FHA mortgage refinance applications rose again last week. This came as a surprise to many brokers and loan officers who anticipated a slower influx of internet mortgage leads because the previous week saw a significant jump in refinance applications.
Jerry Mlinar,a senior mortgage consultant for Woodfield Planning Corporation said, “The rate of applications for FHA refinancing has risen dramatically over the last few weeks and we have attributed it to simple supply and demand. Millions of homeowners are burdened by an adjustable interest mortgage and so naturally they want to reap the rewards of record low fixed rates.”
FHA mortgage refinance rates averaged 4.875% on fixed 30-year terms last week. Even though FHA home loans are more forgiving with equity and credit requirements, many borrowers are still challenged because FHA requires income documentation with all of their refinancing products. Many borrowers have grown accustomed to “stated income” loan programs and that explains why so many applications are turned down.
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