September 17, 2021

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Mortgage News

The Day – Mortgage applications increase in latest MBA weekly survey

According to the US government, mortgage applications rose 1.2 percent from the previous week Mortgage Bankers Association (MBA) Weekly Survey of Mortgage Applications for the Week Ending May 14, 2021.

The Market Composite Index, a measure of the volume of mortgage loan applications, rose by a seasonally adjusted 1.2 percent compared to the previous week. Unadjusted, the index rose by 1 percent compared to the previous week. The refinancing index rose 4 percent from the previous week and was 2 percent lower than the same week a year ago. The seasonally adjusted purchasing index fell by 4 percent compared to a week earlier. The unadjusted purchasing index fell by 4 percent compared to the previous week and was 2 percent higher than in the same week a year ago.

“Mortgage rates rose last week, with all loan types hitting their highest level in two weeks. Interest rates were still lower than in late March and early April, giving borrowers additional refinancing options , 15 percent, requests for conventional and VA refinancing increased. Continued volatility in refinancing requests is likely if interest rates continue to fluctuate around current levels, “said Joel Kan, associate vice president of Economic and Industry Forecasting, MBA. “There has been a decline in the number of requests to buy for both conventional and government loans. Demand for home purchases remains strong, but persistent supply shortages are limiting buying activity, and building material shortages and higher costs make it difficult to increase supply. As a result, supply is increasing Property prices and average purchase credit balances continue to rise, with the average purchase request approaching $ 411,400 – the highest since February. “

The refinancing share of mortgage activity rose from 61.3 percent in the previous week to 63.3 percent of the total applications. The proportion of the adjustable rate mortgage (ARM) increased to 3.9 percent of all applications.

The FHA share of the total applications decreased from 9.9 percent in the previous week to 9.2 percent. The VA share in the total applications rose from 11.7 percent in the previous week to 12.0 percent. The USDA’s share of total applications decreased from 0.5 percent the week before to 0.4 percent.

The average contract rate on 30-year fixed rate mortgages with compliant loan balances ($ 548,250 or less) increased from 3.11 percent to 3.15 percent, with points increasing from 0.32 to 0.36 percent (including the origination fee) for 80 percent Loans to Value Ratio (LTV) Loans. The effective rate has increased compared to last week.

The average contract rate on 30-year fixed rate mortgages with jumbo loan balances (over $ 548,250) rose from 3.27 percent to 3.31 percent, while the points for 80 percent LTV loans rose from 0.34 (including the origination fee) 0.27 percent fell. The effective rate has increased compared to last week.

The average contract rate for 30-year fixed rate mortgages backed by the FHA rose from 3.07 percent to 3.13 percent, with the score for 80 percent LTV loans rising from 0.34 (including the origination fee) to 0. 30 sank. The effective rate has increased compared to last week.

The average contract rate for 15-year fixed-rate mortgages rose from 2.49 percent to 2.54 percent, and for 80 percent LTV loans from 0.29 percent (including the origination fee) to 0.32 percent. The effective rate has increased compared to last week.

The average contract rate for 5/1 ARMs rose from 2.57 percent to 2.58 percent, while the points for 80 percent LTV loans rose from 0.22 (including the origination fee) to 0.25 percent. The effective rate has increased compared to last week.

– Mortgage Bankers Association