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Refinance applications finally jump after weeks of historically low interest rates




After weeks and weeks of historically low mortgage interest rates having little to no impact on the volume of refinance applications, it finally appears that consumers are starting to get the message about interest rates.
According to a new report from the Mortgage Bankers Association, mortgage applications for the week ending June 17, 2016 increased 2.9% from one week earlier.
The data comes courtesy of the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which showed that the Market Composite Index, a measure of mortgage loan application volume, increased 2.9% on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Index increased 2% compared with the previous week.
According to the MBA’s report, the increase came entirely from refinance applications.
Per the MBA’s report, the Refinance Index increased 7% from the previous week, while the seasonally adjusted Purchase Index decreased 2% from one week earlier.
According to the MBA data, the refinance share of mortgage activity increased to 57.7% of total applications from 55.3% the previous week. The adjustable-rate mortgage share of activity increased to 5.7% of total applications.
The unadjusted Purchase Index decreased 4% compared with the previous week and was 12% higher than the same week one year ago.
The Federal Housing Administration share of total applications decreased to 11.7% from 11.8% the week prior, while the Veteran Affairs share of total applications remained unchanged at 11.1%. The United States Department of Agriculture share of total applications also remained unchanged at 0.6%.
The MBA report also provides further evidence of the historically low levels interest rates are at now.
According to the MBA report, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, falling from 3.79% to 3.76%.
Additionally, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) also fell to its lowest level since January 2011, dropping from 3.75% to 3.7%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged from 3.61%.
The average contract interest rate for 15-year fixed-rate mortgages decreased from 3.06% to 3.04%, while the average contract interest rate for 5/1 ARMs increased from 2.87% to 2.92%.
 Source : http://www.housingwire.com/articles/37336-refinance-applications-finally-jump-after-weeks-of-historically-low-interest-rates



CoreLogic: House Prices Up 5.9%

CoreLogic, a leading global property information, analytics and data-enabled services provider, today released its CoreLogic Home Price Index (HPI) and HPI Forecast data for May 2016 which shows home prices are up both year over year and month over month.
Home prices nationwide, including distressed sales, increased year over year by 5.9 percent in May 2016 compared with May 2015 and increased month over month by 1.3 percent in May 2016 compared withApril 2016,* according to the CoreLogic HPI.
The CoreLogic HPI Forecast indicates that home prices will increase by 5.3 percent on a year-over-year basis from May 2016 to May 2017, and on a month-over-month basis home prices are expected to increase 0.8 percent from May 2016 to June 2016. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.
“Housing remained an oasis of stability in May with home prices rising year over year between 5 percent and 6 percent for 22 consecutive months,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The consistently solid growth in home prices has been driven by the highest resale activity in nine years and a still-tight housing inventory.”
“Price appreciation continues to be fairly broad-based across the U.S. From a regional perspective, the Pacific Northwest continues to be the hottest area for home-price growth, with Oregon and Washington leading the way,” said Anand Nallathambi, president and CEO of CoreLogic. “The recent turbulence in financial markets should lead to modestly lower mortgage rates, which will provide even more support to the steadily improving real estate recovery.”
Full-month May 2016 national data can be found at the CoreLogic Home Price Insights page.
*April data was revised. Revisions with public records data are standard, and to ensure accuracy, CoreLogic incorporates the newly released public data to provide updated results.
Source : http://www.sourceoftitle.com/article.aspx?uniq=8467

MBA Weekly Report: Mortgage Apps Spike, Up 14.2% | Avanze Group

Mortgage applications increased 14.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 1, 2016. 

The Market Composite Index, a measure of mortgage loan application volume, increased 14.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 14 percent compared with the previous week. The Refinance Index increased 21 percent from the previous week to the highest level since January 2015. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase Index increased 4 percent compared with the previous week and was 23 percent higher than the same week one year ago.

"Interest rates continued to drop last week as markets assessed the impact of Brexit, downgrading the likelihood of additional rate hikes by the Fed, and mortgage rates for 30-year conforming loans dropped to their lowest level in over 3 years," said Mike Fratantoni, MBA's Chief Economist. "In response, refinance application volume jumped almost 21 percent last week to its highest level since January 2015."

The refinance share of mortgage activity increased to 61.6 percent of total applications, the highest level since February 2016, from 58.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.6 percent of total applications.

The FHA share of total applications decreased to 9.5 percent from 10.6 percent the week prior. The VA share of total applications increased to 12.8 percent from 12.2 percent the week prior. The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.66 percent, from 3.75 percent, with points decreasing to 0.32 from 0.36 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to its lowest level since January 2011, 3.67 percent, from 3.74 percent, with points decreasing to 0.24 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to its lowest level since May 2013, 3.56 percent, from 3.61 percent, with points decreasing to 0.31 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to its lowest level since May 2013, 2.96 percent, from 3.02 percent, with points decreasing to 0.32 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week

The average contract interest rate for 5/1 ARMs decreased to its lowest level since April 2015, 2.85 percent, from 2.88 percent, with points decreasing to 0.26 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


Source : http://www.sourceoftitle.com/article.aspx?uniq=8466
Reference : http://www.avanzegroup.com


MBA Weekly Report: Applications Increase 7.2% | Avanze Group

Mortgage applications increased 7.2 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending July 8, 2016. This week's results included an adjustment for the Fourth of July holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 7.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14 percent compared with the previous week. The Refinance Index increased 11 percent from the previous week. The seasonally adjusted Purchase Index was unchanged from one week earlier. The unadjusted Purchase Index decreased 20 percent compared with the previous week and was 5 percent lower than the same week one year ago. Last year, the Fourth of July fell on the prior week.

The refinance share of mortgage activity increased to 64.0 percent of total applications from 61.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.2 percent of total applications.

The FHA share of total applications increased to 10.0 percent from 9.5 percent the week prior. The VA share of total applications decreased to 12.1 percent from 12.8 percent the week prior. The USDA share of total applications remained unchanged at 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since May 2013, 3.60 percent, from 3.66 percent, with points increasing to 0.36 from 0.32 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.61 percent from 3.67 percent, with points increasing to 0.32 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.53 percent from 3.56 percent, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88 percent from 2.96 percent, with points increasing to 0.34 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.78 percent from 2.85 percent, with points decreasing to 0.25 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week


Source : http://www.sourceoftitle.com/article.aspx?uniq=8470
Reference : http://www.avanzegroup.com/mortgage-outsourcing-title-and-settlement-services.php