Low rates + massive inventory+good incentives+good credit=buyers market
According to the Mortgage Bankers Association’s weekly survey, mortgage applications were flat despite interest rates dipping to their lowest level since May.
The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans rose by a mere 0.03 percent to 656.5 in the week ended Oct. 19, while the four-week moving average was up 0.1 percent to 650.4.
Refinances made up 47% of the loan application volume, up from 45.3% last week, offsetting a drop in home purchase activity.
The benchmark 30-year fixed mortgage averaged 6.21%, down a hefty 0.19% from the previous week, its lowest level since May 11th, and the largest single-week rate decrease for over a year, according to MBA data.
Interest rates on 15-year fixed mortgages dipped to 5.86% from 6.09%, while one year adjustable-rate mortgages fell from to 6.10% from 6.17%.
Adjustable-rate mortgage activity rose to 14.2% of the overall loan application share, up from 13.5% last week.
Unfortunately, low interest rates don’t do much good if homeowners can’t obtain the financing they need because of loan-to-value and loan amount restrictions.
And though loan applications were up 11.5% from a year-ago, the rise is likely a reflection of skewed market conditions, largely consisting of duplicate applications with retail banks.
The MBA’s survey only covers roughly 50 percent of all U.S. retail residential loans, including mortgage banks, commercial banks and thrifts.
Meanwhile, the National Association of Realtors announced total existing-home sales fell 9.0% to a seasonally adjusted annual rate of 5.0 million in September from a 5.5 million pace in August.
The decline was worse than expected and the largest drop on record since 1999.
The MBA said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans rose by a mere 0.03 percent to 656.5 in the week ended Oct. 19, while the four-week moving average was up 0.1 percent to 650.4.
Refinances made up 47% of the loan application volume, up from 45.3% last week, offsetting a drop in home purchase activity.
The benchmark 30-year fixed mortgage averaged 6.21%, down a hefty 0.19% from the previous week, its lowest level since May 11th, and the largest single-week rate decrease for over a year, according to MBA data.
Interest rates on 15-year fixed mortgages dipped to 5.86% from 6.09%, while one year adjustable-rate mortgages fell from to 6.10% from 6.17%.
Adjustable-rate mortgage activity rose to 14.2% of the overall loan application share, up from 13.5% last week.
Unfortunately, low interest rates don’t do much good if homeowners can’t obtain the financing they need because of loan-to-value and loan amount restrictions.
And though loan applications were up 11.5% from a year-ago, the rise is likely a reflection of skewed market conditions, largely consisting of duplicate applications with retail banks.
The MBA’s survey only covers roughly 50 percent of all U.S. retail residential loans, including mortgage banks, commercial banks and thrifts.
Meanwhile, the National Association of Realtors announced total existing-home sales fell 9.0% to a seasonally adjusted annual rate of 5.0 million in September from a 5.5 million pace in August.
The decline was worse than expected and the largest drop on record since 1999.
