Loan Demand: Purchase Volume Remains Near 15-Year Low
Arndecline in refinancing pushed the volume of mortgage applications lower duringrnthe week ended August 26 according to the Mortgage Bankers Association’s WeeklyrnMortgage Applications Survey. The Survey’srnMarket Composite Index which measures application volume was down 9.6 percent</bon a seasonally adjusted basis and 10 percent on an unadjusted basis from thernprevious week while the Refinance Index dropped 12.2 percent. The Purchase Index increased 0.9 percent on arnseasonally adjusted basis but was down 1.3 percent unadjusted. The Purchase Index is 8.2 percent lower thanrnit was one year ago.</p
Thernfour-week moving averages rose for both the Market Index and the RefinancernIndex. The two seasonally adjustedrnmeasures rose 2.5 percent and 4.2 percent respectively while the Purchase Indexrndecreased 2.8 percent. </p
Thernrefinancing share of mortgage volume slipped from the record high 79.8 percentrnof all applications established last week to 77.8 percent in the currentrnweek. Adjustable rate mortgage activityrnincreased to 7.1 percent from 6.2 percent.</p
Thernaverage contract interest rate for 30-year fixed-rate mortgages (FRM) droppedrnto 4.32 percent from 4.39 percent while points including the origination feernincreased from 0.88 to 1.30. The averagernrate for a 15-year FRM was down 7 basis points to 3.49 percent with pointsrnunchanged at 1.0. The effective rate forrnthe 30-year FRM increased week-over-week while it decreased for thern15-year. All quotes are for 80 percentrnloan-to-value ratio loans.</p
“Accountingrnfor the increase in average points paid, effective mortgage rates were littlernchanged last week. Refinance application volume declined for a secondrnweek from recent highs, despite rates staying near a 10-month low, whilernpurchase volume remained near 15-year lows,” said Mike Fratantoni, MBA’srnVice President of Research and Economics.</p
The MBA surveyrncovers over 50 percent of all U.S. retail residential mortgage applications,rnand has been conducted weekly since 1990. rnBase period and value for all indexes is March 16, 1990=100.</p
All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.
Leave a Comment
By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...Late-Stage Delinquencies are Surging
Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...Published by the Federal Reserve Bank of San Francisco
It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...