The number of applications for mortgages in the United States increased at the end of July

0
41

[ad_1]


According to the latest weekly review of mortgage applications by the Mortgage Bankers Association, for the week ending July 23, 2021, mortgage applications in the United States increased 5.7 percent from the week before.

The Market Composite Index, which measures the volume of applications for mortgages, was up 5.7 percent on a seasonally adjusted basis from a week earlier. Unadjusted The index was up 6 percent from the previous week. The refinancing index rose 9 percent from the previous week and was 10 percent lower than the same week a year ago. The seasonally adjusted purchasing index was down 2 percent from a week earlier. The unadjusted buying index was down 1 percent from the previous week and was 18 percent lower than the same week a year ago.

Thumbnail for Joel-Kahn, Deputy Vice President, -MBA.jpg

Joel Kahn

“The yield on 10-year Treasuries fell last week as investors became worried about an increase in COVID-19 cases and the risks of a slowdown in the current economic recovery. Refinancing applications skyrocketed as the 30-year fixed rate mortgage fell to its lowest level since then. In February 2021, and the 15-year rate fell to a new all-time low since 1990, said Joel Kahn, MBA’s deputy vice president for economic and industry forecasting. “Refinancing of ordinary loans increased by more than 11%. With more than 95% of applications for refinancing fixed rate mortgages, borrowers are looking to secure a lower rate for the life of their loan. ”

Kahn added: “The buying index has been down for the second week in a row to its lowest level since May 2020, and has now declined annually for the past three months. Potential buyers continue to be deterred by extremely high house prices and increased competition. The FHFA reported yesterday that house prices in May were 18% higher than a year ago, continuing a seven-month trend of unprecedented house price increases. “

The share of refinancing mortgage activities increased to 67.2 percent of the total number of applications from 64.9 percent in the previous week. The share of adjustable rate mortgage (ARM) transactions increased to 3.6 percent of total applications.

The share of FHA in the total number of applications fell to 9.1 percent from 9.6 percent a week earlier. The share of VA in the total number of applications fell to 9.8 percent from 10.5 percent a week earlier. The USDA’s share of total filings remained unchanged at 0.5 percent from a week earlier.

The average contractual interest rate for 30-year fixed-rate mortgages and associated loan balances ($ 548,250 or less) decreased to 3.01 percent from 3.11 percent, while the interest rate fell to 0.34 percent. 0.43 (including disbursement fees) for 80 percent of the loan. Loans at a cost ratio (LTV). The effective rate has decreased compared to the previous week.

The average contractual interest rate for 30-year fixed-rate mortgages with huge loan balances (over $ 548,250) fell to 3.11 percent from 3.13 percent, while the interest rate fell to 0.27 from 0 .32 (including processing fees) for 80% LTV loans. The effective rate has decreased compared to the previous week.

The average contractual interest rate for 30-year fixed rate mortgages secured by the FHA fell to 3.03 percent from 3.08 percent, with the interest rate increasing to 0.35 from 0.31 (including processing fees) for 80 percent LTV loans. The effective rate has decreased compared to the previous week.

The average contractual interest rate for 15-year fixed-rate mortgages fell to 2.36 percent, the lowest level ever in the study, from 2.46 percent at a flat 0.30 (including processing fees) for 80- interest-bearing loans LTV. The effective rate has decreased compared to the previous week.

The average contractual interest rate for 5/1 ARM increased to 2.81 percent from 2.74 percent, increasing a point to 0.23 from 0.19 (including processing fees) for LTV loans by 80 percent. The effective rate has increased since last week.


Real estate showcase



[ad_2]

Source link