MBA said Mortgage applications dip

by anney on October 14, 2009 · 0 comments

in Mortgage Basics, Mortgage News, Mortgage Refinance, mortgage rates, property, real estate

On Wednesday data from an industry group showed that U.S. mortgage applications dipped last week as interest rates on 30-year loans rose above 5%.

30-year fixed-rate mortgages

It has been said by the Mortgage Bankers Association that rates on 30-year fixed-rate mortgages, rose above 5% for the first time in four weeks after falling to a four-month low.


The 5% level is considered to be a psychological tipping point, and it has recently sparked a boom in refinancing.

Seasonally adjusted index of mortgage applications

The MBA said that its seasonally adjusted index of mortgage applications, in which both purchase and refinance loans are included, decreased 1.8 percent to 742.9 for the week to October 9 after touching its highest since the week ended May 22 in the previous week.

Borrowing costs on 30-year fixed-rate mortgages

On 30-year fixed-rate mortgages borrowing costs, excluding fees, averaged 5.02%, which is raised 0.13 percentage point from the previous week when it hit its lowest since the week to May 22.

The rate has remained above the all-time low of 4.61% that has been set in the week that has ended on March 27. Nevertheless, interest rates were well below the year-ago level of 6.47%.


Applications to buy a home

Applications to buy a home has been dropped, which are considered to be a tentative early indicator of sales. The MBA’s seasonally adjusted purchase index has dropped 5.0% to 290.9.

The four-week moving average of mortgage applications has been increased 5.6%.

Seasonally adjusted index of refinancing applications

There has been a drop of 0.1% to 3,374.6 in the Mortgage Bankers seasonally adjusted index of refinancing applications.

The refinance share of applications

The refinance share of applications increased from 66.3% to 67.4% the previous week, but it has still remained significantly lower than the peak of 85.3% in the week to January 9. The adjustable-rate mortgage share of activity raised from 6.1% to 6.2% the prior week.

Fixed 15-year mortgage rates

Fixed 15-year mortgage rates averaged 4.44%, which has raised up from 4.32% the previous week. Rates on one-year ARMs has shown an increase to 6.71% from 6.56%.


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