Tag Archive for purchase index

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.

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.

Mortgage Rates Rise, So Does Credit Availability

March 13, 2014 Housing Market Comments Off on Mortgage Rates Rise, So Does Credit Availability

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates increased last week across all loan categories, including those with conforming and jumbo balances as well as those backed by the FHA. The increase resulted in a 2.1 percent dip in the Market Composite Index, which measures both purchase and refinance demand. The Purchase Index was down 1 percent, while the Refinance Index dropped 3 percent. The rise in rates follows the previous week’s decrease, which led to a nearly 10 percent spike in demand for mortgage loan applications. The MBA also released their monthly Mortgage Credit Availability Index this week. February’s results show a slight increase from the month before. It was the third consecutive monthly improvement and continues a two-year trend upward. After tightening following the financial crisis, mortgage-credit standards have been easing, making it possible for more would-be borrowers to obtain financing. More here and here.

Mortgage Rate Drop Boosts Demand

March 6, 2014 Housing Market Comments Off on Mortgage Rate Drop Boosts Demand

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed-rate mortgages fell last week. The drop in rates was the first following two consecutive weeks of increases and led to a 9.4 percent spike in total mortgage application demand, which includes both purchase and refinance activity. The seasonally adjusted Purchase Index, which is an indicator of future home sales, jumped 9 percent from one week earlier, while the Refinance Index rose 10 percent. The improvement puts purchase activity 6 percent higher than its level two weeks ago, though it still trails last year’s pace by 19 percent. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Rates Rise For First Time In Weeks

February 20, 2014 Housing Market Comments Off on Mortgage Rates Rise For First Time In Weeks

After five consecutive weeks of declines, the average contract interest rate for 30-year fixed-rate mortgages moved up last week from the week before. According to the Mortgage Bankers Association’s Weekly Application Survey – which covers 75 percent of all U.S. retail residential mortgage applications – rates rose on conforming loan balances, jumbo loans, and mortgages backed by the FHA. The rate increase coincided with a 4.1 percent drop in total mortgage application volume, due in part to a 6 percent decrease in the Purchase Index, which hit its lowest level in three years. The Refinance Index also fell, dropping 3 percent from the previous week and bringing the refinance share of total mortgage activity down to 61 percent from 62 percent the week before. The Mortgage Bankers Association’s survey has been conducted weekly since 1990. More here.

Mortgage Rates, Purchase Demand Both Fall

February 13, 2014 Housing Market Comments Off on Mortgage Rates, Purchase Demand Both Fall

According to the Mortgage Bankers Association’s Weekly Applications Survey, the average contract interest rate for 30-year fixed rate mortgages fell again last week. It was the fifth consecutive week that mortgage rates have fallen. But despite declining rates, total mortgage loan application volume decreased, dropping 2 percent from the previous week due to a 5 percent dip in the Purchase Index. The Purchase Index, which measures loan requests to buy homes and is a leading indicator of home sales, is now 13 percent below the same week one year ago. Refinance activity, on the other hand, was little changed from the week before. The Refinance Index fell 0.2 percent and the refinance share of total mortgage activity remained unchanged at 62 percent. The MBA’s weekly survey covers more than 75 percent of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. More here.

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