Tags: mortgage | applications | mba | rates | home | loan | demand

Mortgage Applications Fall for 4th Week Despite Lower Rates

Mortgage Applications Fall for 4th Week Despite Lower Rates
(Dreamstime/FLYNT)

Wednesday, 13 February 2019 10:05 AM

U.S. mortgage applications declined for a fourth consecutive week even as some home borrowing costs fell to their lowest levels in more than 11 months, the Mortgage Bankers Association said on Wednesday.

The Washington-based industry group’s seasonally-adjusted index on borrower requests to lenders for a loan to buy a home and to refinance one decreased 3.7 percent to 364.8 in the week ended Feb. 8. This was the weakest reading in a month.

"Application activity fell last week - even with rates decreasing - as renewed uncertainty about the domestic and global economy likely held potential homebuyers off the market," said Joel Kan, MBA's Associate Vice President of Industry Surveys and Forecasts. "Despite the recent decline in applications, we still expect that the continued strength of the job market and lower rates will support more purchase activity in the coming months."

Added Kan, "The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November. Government refinances provided a bright spark, picking up over 10 percent, as both FHA and VA refinancing activity saw increases over the week."

The refinance share of mortgage activity increased to 43.2 percent of total applications from 41.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 7.5 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.65 percent from 4.69 percent, with points decreasing to 0.43 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.04 percent from 4.11 percent, with points increasing to 0.48 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

© 2019 Thomson/Reuters. All rights reserved.

   
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U.S. mortgage applications declined for a fourth consecutive week even as some home borrowing costs fell to their lowest levels in more than 11 months, the Mortgage Bankers Association said on Wednesday.
mortgage, applications, mba, rates, home, loan, demand
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2019-05-13
Wednesday, 13 February 2019 10:05 AM
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