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Mortgage Applications Increase 4 Percent Despite Jump in Rates

Mortgage Applications Increase 4 Percent Despite Jump in Rates

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By    |   Wednesday, 25 January 2017 09:56 AM


Mortgage applications increased 4 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending January 20.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.0 percent on a seasonally adjusted basis from one week earlier. The refinance share of mortgage activity decreased to 50.0 percent of total applications, the lowest level since July 2015, from 53.0 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) increased to 4.35 percent from 4.27 percent.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.57 percent from 3.51 percent.

"While this was the first rate increase in January, rates remain about 10 basis points lower than four weeks ago," Lynn Fisher, MBA vice president of research and economics, told CNBC.

"Although it is still early in the homebuying season, purchase activity remains on par with a year ago, suggesting that recent wage growth of nearly 3 percent is helping to offset the increase in interest rates. This trend is also consistent with other reports of homebuying activity," said Fisher.

The news comes just days after the Trump administration, hours after taking office on Friday, suspended a plan to cut mortgage insurance premiums on federally insured home loans that the U.S. government had estimated would save eligible homeowners an average of $500 a year.

The move immediately drew fire from Democrats, and it offered an early example of the potential conflicts ahead as Republican President Donald Trump rolls back measures put in place by his Democratic predecessor, Barack Obama.

"In one of his first acts as president, President Trump made it harder for Americans to afford a mortgage," U.S. Senate Minority Leader Chuck Schumer said in a statement.

"Actions speak louder than words," Schumer said. "One hour after talking about helping working people and ending the cabal in Washington that hurts people, he signs a regulation that makes it more expensive for new homeowners to buy mortgages."

Schumer said the cut equaled an average of $500 per year.

(Newsmax wire services contributed to this report).

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Mortgage applications increased 4 percent from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending January 20.
mortgage, applications, home loans, housing
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2017-56-25
Wednesday, 25 January 2017 09:56 AM
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