Tags: mortgage | home | loan | housing

Mortgage Applications Slip 2.8 Percent Over 2-Week Holiday Period

Mortgage Applications Slip 2.8 Percent Over 2-Week Holiday Period
(Marius Scarlat/Dreamstime)

Wednesday, 03 January 2018 09:31 AM

Mortgage applications decreased 2.8 percent from two weeks earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 29.

The results include adjustments to account for the Christmas holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.8 percent on a seasonally adjusted basis from two weeks earlier, the MBA said.

While the index changes were calculated relative to two weeks prior, the following compositional and rate measures are presented relative to the previous week only.

The refinance share of mortgage activity increased to 52.0 percent of total applications from 51.8 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged from the week prior at 4.25 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.65 percent from 3.66 percent.

Meanwhile, fhe U.S. tax overhaul as currently proposed will make housing less affordable, according to nearly half of the property market experts polled by Reuters, with another third saying it would not do anything to improve it.

A decade on from the start of the crash that knocked more than a third off U.S. home values and led to a deep global recession, the housing market has bounced back smartly, Reuters reported.

U.S. house prices are expected to rise next year and in 2019, faster than predicted just a few months ago and at more than double the rate of underlying consumer inflation and wages. That is in sharp contrast to the outlook for Britain.

The S&P/Case Shiller composite index of U.S. home prices in 20 metropolitan areas is expected to gain 5.1 percent next year and 4.2 percent in 2019.

The main challenge currently is a chronic shortage of homes, which is pushing prices beyond the reach of new buyers, who tend to be young and not particularly well-paid and, if university-educated, already saddled with huge amounts of debt.

(Newsmax wire services contributed to this report).

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Mortgage applications decreased 2.8 percent from two weeks earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending December 29.
mortgage, home, loan, housing
336
2018-31-03
Wednesday, 03 January 2018 09:31 AM
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