Tags: Trump Administration | Trump Tax Reform | mortgage | applications | home | loan | demand

Weekly Mortgage Applications Rise Despite Tax Uncertainty

Weekly Mortgage Applications Rise Despite Tax Uncertainty
(DreamsTime)

Wednesday, 15 November 2017 12:59 PM

Total mortgage application volume rose by 3.1 percent for the week, according to the Mortgage Bankers Association's seasonally adjusted report.

The refinance share of mortgage activity increased to its highest level since September 2017, 51.3 percent of total applications, from 49.0 percent the previous week, the MBA reported.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.18 percent.

The rate is higher than it was a year ago, when it was 3.57 percent. But it is still historically low. Before the 2008 recession, it was typically closer to 6 percent, the Associated Press reported.

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since March 2017, 3.54 percent, from 3.51 percent.

Long-term home loan rates tend to track the yield on 10-year U.S. Treasury notes, which have risen since early September, possibly in anticipation of tax cuts pushed by President Donald Trump and Republicans in Congress.

The Fed has raised short-term interest rates four times in nearly two years. That has contributed to pushing up mortgage rates to 4.32 percent last December, but the 30-year rate has mostly fallen since then.

The average rate on the five-year, adjustable-rate mortgage ticked down to 3.22 percent from 3.23 percent last week.

"Additional developments surrounding the administration's tax-reform plan pushed rates lower at the beginning of the week, but this was effectively offset by news of stronger economic growth in Europe," Joel Kan, an MBA economist, told CNBC.

(Newsmax wire services contributed to this report).

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Weekly Mortgage Applications Rise 3.1 Percent
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2017-59-15
Wednesday, 15 November 2017 12:59 PM
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