Tag Archive for MBA

Demand For Loans To Buy Homes Increases

May 8, 2014 Housing Market Comments Off on Demand For Loans To Buy Homes Increases

Demand for loans to purchase homes surged last week, according to the Mortgage Bankers Association’s Weekly Applications Survey. The seasonally adjusted Purchase Index gained 9 percent from one week earlier, contributing to a 5.3 percent increase in overall mortgage loan application volume. Mike Fratantoni, MBA’s chief economist, said the spike in demand for purchase applications likely reflects the impact of continued growth in the job market and lower mortgage rates. In fact, average mortgage rates fell across all loan categories last week, including 30-year fixed-rate loans with conforming and jumbo balances, FHA loans, and 15-year fixed-rate loans. The drop brought average rates on conforming and jumbo balances to their lowest level all year. Also, the Refinance Index gained 2 percent from the week before. The MBA’s survey has been conducted weekly since 1990 and covers more than 75 percent of all U.S. retail residential mortgage applications. More here.

Demand For Mortgage Loans Down Last Week

May 1, 2014 Housing Market Comments Off on Demand For Mortgage Loans Down Last Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates for 30-year fixed-rate loans with jumbo balances and those backed by the FHA fell from the previous week, while interest rates for conforming balances were unchanged. But though rates didn’t rise last week, neither did demand for home purchase loans. The seasonally adjusted Purchase Index, which is an indicator of future home sales, was down 4 percent from the week before. Combined with a 7 percent drop in refinance activity, total demand for mortgage applications fell 5.9 percent. Mike Fratantoni, MBA’s chief economist, said refinance activity continued a declining trend that began last May. Industry analysts believe this year will see a change from a market dominated by refinance activity to one with increasing demand for home purchase loans. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Size Of Average Home Loan Breaks Record

April 24, 2014 Housing Market Comments Off on Size Of Average Home Loan Breaks Record

According to new data from the Mortgage Bankers Association’s Weekly Applications Survey, the size of the average loan to purchase a home has reached the highest level in the history of the survey. The average loan is now $280,500. This is due, in part, to the fact that interest rates on mortgages with jumbo balances are low by historical standards. In fact, they are even lower than rates on loans with conforming balances, which is not typically the case. But it is also consistent with a trend toward rising purchase activity for larger loan amounts, the release said. Also, the MBA’s survey found that overall demand for mortgage applications fell 3.3 percent last week. The Refinance Index was down 4 percent from the previous week and purchase activity dropped 3 percent. The decline follows a 4.3 percent increase in demand the week before. The MBA’s survey has been conducted weekly since 1990 and covers 75 percent of all U.S. retail residential mortgage applications. More here.

Loan Demand Rises As Mortgage Rates Fall

April 17, 2014 Housing Market Comments Off on Loan Demand Rises As Mortgage Rates Fall

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loan applications was up 4.3 percent last week from the week before. The improvement was due to a 7 percent surge in refinance activity, which has been down in recent weeks. The Purchase Index was up 1 percent from the previous week. The spike in refinance activity was likely due to a decline in interest rates, which was seen across all loan categories, including 30-year fixed rate mortgages with both conforming and jumbo balances, FHA-backed loans, and 15-year fixed rate loans. The refinance share of total mortgage activity climbed to 52 percent, 1 percent higher than the previous week. The MBA’s survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Home Loan Application Demand Rises Again

April 10, 2014 Housing Market Comments Off on Home Loan Application Demand Rises Again

As the spring home buying season gets under way, demand for loans to purchase homes has been increasing. In fact, according to the Mortgage Bankers Association’s Weekly Applications Survey, purchase application volume was up 3 percent last week from the week before. It was the third consecutive week the Purchase Index – which is an indicator of future home sales – has increased. Despite the rising demand for loans to buy homes, total mortgage loan application volume was down 1.6 percent, due to a 5 percent drop in refinance demand. The refinance share of total mortgage activity is now at 51 percent, down from 53 percent one week earlier. Industry forecasts have predicted a slowing of refinance demand this year, as the market shifts to one dominated by increased sales activity. Also in the report, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances was unchanged from the previous week. Interest rates for jumbo loans rose slightly and the average rate for loans backed by the FHA fell from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Home Loan Demand Rises For 2nd Straight Week

April 3, 2014 Housing Market Comments Off on Home Loan Demand Rises For 2nd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose for the second consecutive week. The seasonally adjusted Purchase Index – which is an indicator of future home sales – was up 1 percent from the week before, providing further evidence of a shift from a refinance dominated market to one with increasing purchase activity. The Market Composite Index, which measures total mortgage application volume, fell 1.2 percent, however, due to a 3 percent drop in the Refinance Index. The refinance share of total mortgage activity was down for the eighth straight week, slipping to 53 percent of all applications. Mortgage rates, on the other hand, were largely unchanged. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances held steady, while jumbo loans and loans backed by the FHA saw a slight increase from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Demand For Loans To Buy Homes Increases

March 27, 2014 Housing Market Comments Off on Demand For Loans To Buy Homes Increases

The Mortgage Bankers Association’s Weekly Applications Survey measures both purchase and refinance demand based on the number of people applying for home loans. The Purchase Index, which tracks the number of requests for loans to buy homes, is a good indicator of future home sales. Last week, the Purchase Index rose 3 percent from the week before, due to a 4 percent spike in conventional purchase applications. Government loan applications were virtually unchanged. Despite the rising demand to buy homes, a drop in refinance activity brought the Market Composite Index – a measure of overall demand – down 3.5 percent from the previous week. The results are evidence of an anticipated shift this year from a market dominated by refinance demand toward one with increased purchase activity. Also, average mortgage rates were up last week across all loan categories, including 30 and 15 year fixed-rate mortgages, conforming and jumbo loans, and FHA-backed loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

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