Mortgage Activity Low as Rates Remain Above Seven Percent

2023-09-13T10:24:55-05:00

By Jesse Wade on September 13, 2023 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending September 8th, total mortgage activity decreased 0.8% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate rose six basis points to 7.27%. The FRM rate has remained above 7% since the start of August. The Market Composite Index, a measure of mortgage loan application volume, fell by 0.8% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 1.3%, while refinancing activity decreased 5.4% week-over-week. Interest rates remained above seven percent for the sixth consecutive week. The combination of higher rates and low existing for-sale inventory have hampered potential buyers as the purchase index remained historically low. The seasonally adjusted purchase index was 27.5% lower than one year ago while the seasonally adjusted refinancing index was 31.1% lower than one year ago. The refinance share of mortgage activity fell from 30.0% to 29.1% over the week, while the adjustable-rate mortgage (ARM) share of activity rose to 7.5% from 6.7%. The average loan size for purchases was $410,900 at the start of September, down from $413,600 over the month of August. The average loan size for refinancing decreased from $255,900 over the month of August to $255,400. The average loan size for an ARM was up at start of September to $833,000 while the average loan size for a FRM fell to $329,200. Related ‹ Revolving Credit Growth Reaccelerates in JulyTags: finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Mortgage Activity Low as Rates Remain Above Seven Percent2023-09-13T10:24:55-05:00

Mortgage Activity Increases Despite Rates Topping 7%

2023-07-12T11:19:20-05:00

By Jesse Wade on July 12, 2023 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending July 7th, total mortgage activity increased 0.9% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate rose 22 basis points to 7.07%. The FRM rate has risen 30 basis points over the past month and topped 7% for the first time since November of 2022. The Market Composite Index, a measure of mortgage loan application volume, rose by 0.9% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 1.7%, while refinancing activity decreased 1.3% week-over-week. With the Fed indicating that rates will remain higher until inflation has fully cooled, mortgage rates increased to their highest level since November of last year. The higher rates have kept potential buyers on the sideline and greatly diminished the demand for refinancing. The seasonally adjusted purchase index was 26.3% lower than one year ago while the seasonally adjusted refinancing index was 39.3% lower than one year ago. The refinance share of mortgage activity fell from 27.4% to 26.8% over the week, while the adjustable-rate mortgage (ARM) share of activity rose to 6.6% from 6.2%. The average loan size for purchases was $426,100 in the through the first week of July, down from $426,900 over the month of June. The average loan size for refinancing decreased from $260,700 over the month of June to $254,900 in the first week of July. The average loan size for an ARM was up at start of July to $759,200 while the average loan size for a FRM fell to $353,500. Related ‹ CPI Eases Further as Housing Inflation SlowsTags: finance, home purchases, housing finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Mortgage Activity Increases Despite Rates Topping 7%2023-07-12T11:19:20-05:00

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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