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Weekly Mortgage Applications Fell in Final Weeks of 2019

Weekly Mortgage Applications Fell in Final Weeks of 2019
(Dreamstime/FLYNT)

Wednesday, 08 January 2020 12:48 PM

Mortgage applications decreased 1.5 percent from two weeks earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending January 3.

The results include adjustments to account for the holidays.

The Market Composite Index, a measure of mortgage loan application volume, decreased 1.5 percent on a seasonally adjusted basis from two weeks earlier. 

The Refinance Index decreased 8 percent from two weeks ago and was 74 percent higher than the same week one year ago. 

"Mortgage rates dropped last week, as investors sought safety in U.S. Treasury securities as a result of the events in the Middle East, with the 30-year fixed mortgage rate declining to its lowest level (3.91 percent) since early October," said Mike Fratantoni, MBA senior vice president and chief economist.

"Despite lower rates, refinance volume decreased these last two weeks, and we expect that it will slowly trail off in the first half of 2020 as long as mortgage rates remain in this same narrow range. Homeowners would need to see a sharp drop in rates to reinvigorate the refinance wave seen in 2019," Fratantoni said.

"The end of the year is the slowest time for home sales, so it is not at all surprising that activity was light. However, after a seasonal adjustment, purchase application volume was up relative to the pre-holiday period and started off 2020 ahead of last year's pace. We expect that the strong job market will continue to support purchase activity this year, and the uptick in housing construction towards the end of last year should provide more inventory for prospective buyers," Fratantoni said.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.91 percent from 3.95 percent.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.35 percent from 3.37 percent.

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Mortgage applications decreased 1.5 percent from two weeks earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending January 3.
weekly, mortgage, applications, home, loan
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2020-48-08
Wednesday, 08 January 2020 12:48 PM
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