Mortgage Activity Remains Low Due to Market Uncertainty

2022-11-09T10:17:32-06:00

By Jesse Wade on November 9, 2022 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending November 4th, total mortgage activity declined 0.1% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate rose eight basis points to 7.14%. The FRM rate has risen 33 basis points over the past month and has been above 7% for the past three weeks. The Market Composite Index, a measure of mortgage loan application volume, decreased by 0.1% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 1.3%, while refinancing activity decreased 3.5% week-over-week. The 1.3% increase in purchasing activity was the first increase in the past six weeks even though purchasing activity has decreased 41.6% on a year-over-year basis. The refinancing activity index is down 86.9% from the same week one year ago, the index has hit its lowest point since August 2000. The refinance share of mortgage activity declined from 28.6% to 28.1% over the week, while the adjustable-rate mortgage (ARM) share of activity slightly increased from 11.8% to 12.0%. With continued increases in FRM rates, buyers are looking for ways to save when purchasing. ARMs offer lower rates than FRMs which has led to an increase in activity with buyers more likely to use an ARM to purchase a home. According to Freddie Mac, the current 5/1-ARM rate is at 5.95%. Related ‹ Revolving Debt Surges as Credit Card Rates Hit 18-Year HighTags: finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Mortgage Activity Remains Low Due to Market Uncertainty2022-11-09T10:17:32-06:00

Mortgage Activity Falls as Rates Top 6%

2022-09-15T12:18:52-05:00

By David Logan on September 15, 2022 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending September 9th, total mortgage activity declined 1.2% and the average 30-year fixed-rate mortgage (FRM) rate rose seven basis points to 6.01%. The FRM rate has increased 56 bps over the past month reaching a 14-year high. The Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 0.2% while refinancing fell 4.0%. Purchase application volume is down 28.7% over the past 12 months, the largest year-over-year decline since April 2020. Similarly, refinance activity index has plummeted 83.0% over the past year and has declined each of the past five weeks. The refinance share of mortgage activity declined from 30.7% to 30.2% over the week. Conversely, the adjustable-rate mortgage (ARM) share of activity increased to 9.1% of total applications, down from 7.4% one month prior. Related ‹ Percent Share of 5,000+ Square Foot Homes Rises in 2021Tags: finance, home purchases, housing finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Mortgage Activity Falls as Rates Top 6%2022-09-15T12:18:52-05:00

Thinking of Refinancing? Consider These 3 Things

2022-04-12T11:20:37-05:00

Refinancing your mortgage loan can save you money. However, here are factors to consider to make sure it’s the right choice for you. Interest Rates Lower interest rates are a leading cause for homeowners who want to refinance. The goal, of course, is to lower your monthly payment. But lowering a monthly payment alone won’t always save you money. Understand the new loan’s term and any fees associated with refinancing to make sure you’re seeing the whole picture.  Credit Score Your credit score played a large part in the interest rate on your existing mortgage, and it has similar influence over any refinanced loan. If your credit score has dropped and you can’t qualify for a lower rate, refinancing may not help you financially. Mortgage History Where are you on your current mortgage? If you’re towards the end of your loan term, refinancing may have not make sense. If you’re thinking about refinancing, make sure you first identify your financial goals. Then talk to a lender about how to make those goals happen.  

Thinking of Refinancing? Consider These 3 Things2022-04-12T11:20:37-05:00

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