Tag Archive for Mike Fratantoni

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.

Mortgage Demand Stalls As Rates Rise

December 20, 2013 Housing Market Comments Off on Mortgage Demand Stalls As Rates Rise

The Mortgage Bankers Association’s Weekly Applications Survey covers more than 75 percent of all U.S. residential mortgage applications and is a measure of both refinancing and home purchase demand. According to the most recent release, total mortgage loan application volume fell by 5.5 percent last week from one week earlier. Both the Refinance Index and the Purchase Index fell 6 percent from the previous week. Mike Fratantoni, MBA’s vice president of research and economics, said the market index fell to its lowest level in more than a dozen years. According to Fratantoni, purchase and refinance demand dropped due to increasing interest rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances edged up last week, reaching its highest level since September. More here.

Refinancing Activity Continues To Rise

October 17, 2013 Housing Market Comments Off on Refinancing Activity Continues To Rise

According to the Mortgage Bankers Association’s Weekly Applications Survey, refinancing demand increased again last week, rising 3 percent after a 2.5 percent gain in the previous week’s survey. But despite the improvement, total mortgage application demand was nearly flat, registering just a 0.3 percent increase due to a decline in purchase loan activity. That decline was caused, in part, by the effects of the federal government’s shutdown. Mike Fratantoni, MBA’s vice president of research and economics, said the shutdown had a notable impact on the mortgage market, as applications for government programs dropped more than 7 percent to their lowest level since December 2007. The survey also found the average contract interest rate for 30-year fixed-rate mortgages up slightly from the week before. The MBA’s weekly survey covers more than 75 percent of all U.S. retail residential mortgage applications. More here.