Fall in mortgage loan applications at the end of October

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According to the latest Mortgage Bankers Association report Weekly Mortgage Application Survey for the week ending October 29, 2021, mortgage applications in the United States were down 3.3% from the previous week.

The Composite Market Index, a measure of mortgage application volume, declined 3.3% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index fell 4 percent from the previous week.

The refinancing index fell 4 percent from the previous week and was 33 percent lower than the same week a year ago. The seasonally adjusted buying index was down 2 percent from the previous week. The unadjusted buying index fell 3 percent from the previous week and was 9 percent lower than the same week a year ago.

Joel kan

“Mortgage rates fell for the first time since August, as concerns about supply chain bottlenecks, declining consumer confidence, weaker economic growth and rising inflation have lower Treasury yields. Most of the rate cut came later in the week, which is likely why refinancing requests fell to the lowest level since January 2020, and the overall share of activity fell to the lowest since July 2021, ”said Joel Kan, associate vice president of economic and industrial forecasting at the MBA. growing number of borrowers have already refinanced. “

Kan added, “Buying activity continues to be held back by high prices and low inventory for sale, but current levels of demand continue to indicate healthy housing demand. MBA forecasts a record $ 1.6 billion in purchase mortgages this year and continued demand leading to another record year in 2022. “

The refinancing share of mortgage activity fell to 61.9% of total applications, from 62.2% the previous week. The variable rate mortgage (ARM) activity share increased to 3.2% of total applications.

The FHA’s share of total claims fell to 9.2 percent from 10.4 percent the week before. The VA share of total claims decreased to 9.9% from 10.6% the previous week. USDA’s share of total claims remained unchanged from 0.5% the previous week.

The average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 548,250 or less) decreased to 3.24% from 3.30%, with the points remaining unchanged at 0. 34 (including set-up costs) for a loan-to-value ratio of 80%. ratio loans (LTV). The effective rate has decreased compared to last week.

The average contractual interest rate for 30-year fixed rate mortgages with jumbo loan balances (above $ 548,250) decreased to 3.29% from 3.34%, with points dropping from 0, 27 to 0.29 (including set-up fees) for 80% LTV loans. The effective rate has decreased compared to last week.

The average contractual interest rate for 30-year fixed-rate mortgages guaranteed by the FHA decreased to 3.29% from 3.31%, with the points remaining unchanged at 0.38 (including origination fees) for 80% LTV loans.

The effective rate has decreased compared to last week. The average contractual interest rate for 15-year fixed rate mortgages decreased to 2.58% from 2.59%, with points decreasing to 0.29 from 0.33 (including origination fees) for 80% LTV loans.

The effective rate has decreased compared to last week. The average contractual interest rate for 5/1 ARMs increased from 2.89% to 2.88%, with points dropping from 0.11 to 0.13 (including origination fees) for LTV loans to 80%. %. The effective rate has decreased compared to last week.


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