Higher Rates and Lack of Supply Continue to Hamper Mortgage Market

2024-02-07T10:19:56-06:00

By Jesse Wade on February 7, 2024 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending February 2nd, total mortgage activity increased 3.7% from the previous week, and the average 30-year fixed-rate mortgage (FRM) rate rose two basis points to 6.80%. The 30-year FRM has floated around 6.8% for much of the start of the year, only moving one basis point from January. Total mortgage activity is 12.9% lower than last year. One reason for this is the 30-year FRM was at a relatively lower level of 6.18% last year. The Market Composite Index, a measure of mortgage loan application volume, rose by 3.7% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity fell 0.7% and refinancing activity increased 12.3% week-over-week. Purchasing activity was 18.6% lower than one year ago, and refinancing activity was up 0.7% from one year ago. The refinance market has remained dull due to most homeowners having lower rates than the current levels, while in the purchase market the lack of housing supply continues to hamper potential buyers. The refinance share of mortgage activity rose from 34.2% to 35.4% over the week, while the adjustable-rate mortgage (ARM) share of activity fell from 6.6% to 6.4%. The average loan size for purchases was $434,800 at the start of February, up from $421,800 over the month of January. The average loan size for refinancing decreased from $273,500 in January to $270,500 in February. The average loan size for an ARM was up at the start of February to $949,200, while the average loan size for a FRM rose to $337,300. ‹ Homeownership Rates by Race and EthnicityTags: finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Higher Rates and Lack of Supply Continue to Hamper Mortgage Market2024-02-07T10:19:56-06:00

Modest Increase in Mortgage Activity to Start 2024

2024-01-10T10:29:12-06:00

By Jesse Wade on January 10, 2024 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending January 5th, total mortgage activity increased 9.9% from the previous week, and the average 30-year fixed-rate mortgage (FRM) rate rose five basis points to 6.81%. After the total mortgage activity index fell 10.7% in the last week of December, it bounced back in the first week of the year. The data includes an adjustment for New Year’s. The Market Composite Index, a measure of mortgage loan application volume, rose by 9.9% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 5.6% and refinancing activity increased 18.8% week-over-week. Purchasing activity was 6.8% lower than one year ago, and refinancing activity was up 30.2% from the same week one year ago. Despite the 30-year FRM rate increasing over the week, both refinancing and purchasing activity saw small increases as rates start to settle around seven percent, which is significantly lower than the 2023 peak rate of 7.9% in October. The refinance share of mortgage activity rose from 36.3% to 38.3% over the week, while the adjustable-rate mortgage (ARM) share of activity fell from 6.0% to 5.4%. The average loan size for purchases was $402,900 at the start of January, down from $408,600 over the month of December. The average loan size for refinancing increased from $272,200 in December to $274,100 in January. The average loan size for an ARM was down at the start of January to $862,600 while the average loan size for a FRM rose to $324,400. ‹ Consumer Credit Outstanding Climbs as Credit Card Debt SurgesTags: finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Modest Increase in Mortgage Activity to Start 20242024-01-10T10:29:12-06:00

Largest Increase in Mortgage Activity Since March

2023-12-13T10:16:06-06:00

By Jesse Wade on December 13, 2023 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending December 8th, total mortgage activity increased 7.4% from the previous week, and the average 30-year fixed-rate mortgage (FRM) rate fell 10 basis points to 7.07%. The FRM rate has decreased by 54 basis points over the past month. The Market Composite Index, a measure of mortgage loan application volume, rose by 7.4% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 3.5%, and refinancing activity increased 19.4% week-over-week. The market composite index increase over the week was the largest since the first week of March. Despite this, the index is still 7.7% lower than one year ago. Purchasing activity was 18.1% lower than last year and refinancing activity, for a third consecutive week, increased from a year ago at 27.2%. Buyers continue to struggle with a lack of existing inventory despite rates falling significantly over the past month. The refinance share of mortgage activity rose from 34.7% to 39.2% over the week while the adjustable-rate mortgage (ARM) share of activity fell from 7.4% from 6.3%. The average loan size for purchases was $396,500 at the start of December, down from $406,600 in November. Conversely, the average loan size for refinancing increased from $245,900 to $251,000. Lastly, the average loan size for an ARM was up at start of December to $809,200 while the average loan size for a FRM fell to $309,100, its lowest level since April 2021. ‹ Inflation Slows While Housing Costs Remain StickyTags: finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Largest Increase in Mortgage Activity Since March2023-12-13T10:16:06-06:00

Small Jump In Mortgage Activity As Rates Decrease

2023-11-08T10:15:13-06:00

By Jesse Wade on November 8, 2023 • Per the Mortgage Bankers Association’s (MBA) survey through the week ending November 3rd, total mortgage activity increased 2.5% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate fell 25 basis points to 7.61%. The FRM rate has decreased by 6 basis points over the past month but has hovered between 7.5% and 8.0% for six consecutive weeks. The Market Composite Index, a measure of mortgage loan application volume, rose by 2.5% on a seasonally adjusted (SA) basis from one week earlier. Purchasing activity increased 3.0% and refinancing activity increased 1.6% week-over-week. While the market composite index increased over the week, mortgage activity remains largely muted due to the continuing lack of existing for-sale inventory. The seasonally adjusted purchase index was 20.7% lower than one year ago while the seasonally adjusted refinancing index was 6.9% lower than one year ago. The refinance share of mortgage activity rose from 31.2% to 31.4% over the week while the adjustable-rate mortgage (ARM) share of activity fell to 9.8% from 10.7%. The average loan size for purchases was $405,200 at the start of November, down from $413,200 over the month of October. The average loan size for refinancing decreased from $247,800 over the month of October to $243,700. The average loan size for an ARM was down at start of November to $742,300 while the average loan size for a FRM fell to $312,400. Related ‹ Porches on New Homes as Popular as EverTags: finance, home purchases, housing finance, interest rates, mba, mortgage applications, mortgage bankers association, mortgage lending, refinancing

Small Jump In Mortgage Activity As Rates Decrease2023-11-08T10:15:13-06:00

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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