The Day – Mortgage Applications Rise in Latest Weekly MBA Survey

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Mortgage applications rose according to the data Mortgage Bankers Association (MBA) Weekly mortgage applications opinion poll for the week until 02/26/2021.

The Market Composite Index, a measure of the volume of mortgage loan applications, rose by a seasonally adjusted 0.5 percent from a week earlier. On an unadjusted basis, the index gained 2 percent compared to the previous week. The refinancing index rose 0.1 percent from the previous week and was 7 percent higher than in the same week a year ago. The seasonally adjusted purchasing index rose by 2 percent compared to a week earlier. The unadjusted purchasing index rose by 5 percent compared to the previous week and was 1 percent higher than in the previous week.

“Mortgage rates rose last week on market expectations of stronger economic growth and higher inflation. The 30-year fixed rate saw its largest increase in a week in nearly a year, hitting 3.23 percent – its highest level since July 2020,” said Joel Kan. Associate Vice President of Economic and Industry Forecasting of the MBA. “The total refinance rate fell for the fourth straight week, and conventional refinance requests fell more than 2 percent to their lowest level in four months. Government refinancing applications historically lag behind the more interest-rate sensitive movements of conventional applications, and that has recently been the case. “Week as both FHA and VA refinancing volumes have increased.”

Kan added, “The housing market is entering the busy spring buying season with strong demand. Purchase requests have increased, with government requests – likely first-time buyers – cutting the average loan size for the first time in six weeks.”

The refinancing share of mortgage activities fell from 68.5 percent in the previous week to 67.5 percent of the total applications. The proportion of adjustable rate mortgages (ARM) rose to 2.9 percent of the total applications.

The share of the FTA in the total applications rose from 11.2 percent in the previous week to 12.1 percent. The VA share in the total number of applications rose from 11.9 percent in the previous week to 12.3 percent. The USDA’s share of total applications rose from 0.3 percent the previous week to 0.4 percent.

The average contract rate for 30-year fixed-rate mortgages with corresponding loan balances ($ 548,250 or less) increased from 3.08 percent to 3.23 percent, with points increasing from 0.46 to 0.48 (including the loan fee) for 80 percent loans to Value Loan Ratio (LTV). The effective interest rate has increased since last week.

The average contract rate on 30-year fixed-rate mortgages with jumbo loan balances (more than $ 548,250) rose from 3.23 percent to 3.33 percent, with points going from 0.43 to 0.41 (including the loan fee) for 80 Percent LTV loans fell. The effective interest rate has increased since last week.

The average contract rate for 30-year fixed-rate mortgages backed by the FHA rose from 3.00 to 3.19 percent, with the points increasing from 0.33 to 0.30 (including the rental fee) for 80 percent LTV loans sank. The effective interest rate has increased since last week.

The average contract rate for 15-year fixed-rate mortgages rose from 2.56 percent to 2.64 percent, while for 80 percent LTV loans it fell from 0.40 to 0.39 (including the rental fee). The effective interest rate has increased since last week.

The average contract rate for 5/1 ARMs rose from 2.83 percent to 2.84 percent, with points increasing from 0.36 to 0.58 (including the subscription fee) for 80 percent LTV loans. The effective interest rate has increased since last week.

—Mortgage Bankers Association (MBA)

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