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Purchase Activity Rose Again as Holiday Neared

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Thanksgiving had its usual impact on the mortgage market in the week ending Nov. 25, but the third week of easing degree of interest This contributed to an increase in the number of applications for housing loans. The Mortgage Brokers Association (MBA) said its Market Composite Index, a measure of application volume, fell 0.8% on a seasonally adjusted basis from the previous week. Results were adjusted to account for weeks with reduced holidays. The unadjusted index fell 33%.

Refinancing Index Falls 13% That was 86 percent lower than the same week a year ago. Refinance applications accounted for 26.1% of his total, down from 28.4% the week before.

seasonally adjusted Purchasing index rises for 4th consecutive week,gain 4 percent from a week ago. The unadjusted purchasing index was 31% lower than the previous week and 41% lower year-on-year.

mortgage interest rate It fell again last week after bond yields fell. Interest rates on 30-year fixed mortgages have fallen to 6.49%, down 57 basis points in the last four weeks,” said Joel Kan, MBA’s vice president and deputy chief economist. Additionally, mortgage rates for most other types of loans have fallen. “

“The domestic and international economies are weakening and this should lead to slower inflation and allow the Fed to slow the pace of rate hikes,” he continued. Purchasing activity increased slightly, but interest rates continue to fall. Not enough to recapture refinancing activity. Refinancing applications were down another 13%, with 26% of applicants refinancing. Both indicators were his lowest since 2000. “

Other results from the MBA’s weekly mortgage application survey include:

  • Average weekly loan size increased to $367,500 from $363,300 the previous week, while purchased loan size decreased to $399,900 from $400,100.
  • FHA’s share of total filings was 12.2%, down from 13.4% the previous week. Meanwhile, the VA percentage increased from 10.5% to 11.2%. USDA’s share fell to 0.5% from 0.6% the week before.
  • Matching 30-year fixed rate mortgage (FRM) average contract rates fell 18 basis points, unchanged at 18 points, while jumbo 30-year FRM rates rose 5 basis points to 6.35%. I was. Points decrease from 0.74 to 0.61.
  • The FHA-backed 30-year FRM rate will drop from 6.66% to 6.57%, Points increase from 1.01 to 1.14.
  • The 15-year FRM rate fell from 6.08% to 6.02% and points decreased from 0.70 to 0.69.
  • 5/1 Average contract interest rates for variable rate mortgages (ARMs) fell from 5.78% to 5.48%. Points increase from 0.73 to 0.89.
  • The percentage of variable rate mortgage (ARM) activity increased to 9.0% of total applications.

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