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, 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