Warning: Undefined variable $custom_content in /home4/comcompare/public_html/mortgagenews/wp-content/plugins/code-snippets/php/snippet-ops.php(582) : eval()'d code on line 10
Mortgage applications increased by 4.2% compared to the previous week, according to the Weekly Mortgage Bankers’ Weekly Mortgage Application Survey for the week ending Friday, June 17th.
The composite market index, which measures the volume of mortgage applications, increased by 4.2% compared to the previous week on a seasonally adjusted basis.
On an unchanged basis, the index recorded a 3% increase compared to last week.
On the other hand, the refinancing index fell by 3% compared to the previous week and by 77% lower than in the same week last year.
In addition, the seasonally adjusted shopping index rose by 8% compared to the previous week. No change comes from a 6% increase compared to last week and a 10% decrease compared to the same week last year.
“Mortgage rates continued to rise last week, with the 30-year mortgage rate jumping 33 basis points to 5.98% – the highest since November 2008 and the largest weekly increase since 2009,” said Joel Kan, associate vice president of economics. and MBA in Industrial Forecasting.
“All other types of lending have also increased by at least 20 basis points, driven by a 75 basis point increase in the Federal Reserve and comments that inflation will slow more.
Borrowing costs are now almost double compared to last year, which led to a 77% reduction in the number of refinances in the last 12 months. “
“Purchasing applications has improved for the second week in a row – primarily due to traditional applications – and the share of ARM applications has jumped back by more than 10%,” added Kan.
Deficits and higher interest rates on loans eased demand. The average loan size, just above $ 420,000, is well below its peak of $ 460,000 earlier this year and is likely a sign that property price growth is moderating. “
The share of loan refinancing activity decreased to 29.7% in total applications by 31.7% reported last week, while the share of activity in adjustable-rate mortgages (ARM) increased to a total of 10.6%.
In addition, FHA’s share of total applications rose to 12% from 11.8% last week and VA’s share fell to 10.7% from 11.7%. The USDA’s share of total applications also fell 0.5% from 0.6% last week.
The weekly MBA survey also covers the average contract costs for different types of loans.
For 30-year fixed-rate loans with current balances of $ 647,200 or less, the rate increased to 5.98% from 5.65%, with points also rising to 0.77 from 0.71. value ratio (LTV) loan.
For 15-year fixed-rate mortgages, the average contract rate increased to 5.05% from 4.79%, with points also rising to 0.86 from 0.80 (including initial fees) for 80% of the LTV loan.
For 5/1 ARM, average contract rates increased to 4.78% from 4.57%, while points also increased to 0.84 from 0.80 (including resource costs) for loans of 80% in LTV.
The effective rate for all these types of loans has increased since last week.
Reference Source: MPA
