Mortgage credit availability dropped to its lowest level since March 2013 in September, according to the Mortgage Bankers Association’s (MBA) Mortgage Credit Availability Index (MCAI). The MCAI fell by 5.4% to a reading of 102.5 last month. This is the seventh straight month of tightening lending standards. The Conventional MCAI fell 4.9%. Its component indices also declined, with the Jumbo down 5.8% and the Conforming down 3.6%. The Government MCAI also dropped by 5.8%. This index has fallen in seven of the last eight months, and is now its lowest point since April 2013. Most of these indices have fallen to their lowest levels in more than a year. “With the likelihood of a weakening economy, which would lead to…
Mortgage loan application volume tumbled last week, falling to its slowest pace since 1997 as rates hit 6.75%, according to the Mortgage Bankers Association’s weekly survey. Interest rates are now at their highest point since 2006. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 14.2%. The adjusted purchase index fell 13%, while the unadjusted purchase index decreased 13% and was 37% lower YOY. The refinance index dropped by 18% and was 86% lower than the same time last year. Refis made up 29% of total applications. “The current rate has more than doubled over the past year and has increased 130 basis points in the past seven weeks alone. The steep increase in rates…
Mortgage loan application volume returned to its downward trajectory, wiping out gains from last week as mortgage rates breached 6.5% for the first time since mid-2008, according to the Mortgage Bankers Association’s weekly survey. The adjusted Market Composite Index, a measure of mortgage loan application volume, dropped by 3.7%, effectively negating a 3.8% rise last week. The adjusted purchase index fell 0.4%, while the unadjusted purchase index decreased 1% and was 29% lower YOY. The refinance index dropped by 11% and was 84% lower than the same time last year. Refis made up 30.2% of total applications. “Applications for both purchase and refinances declined last week as mortgage rates continued to increase to multi-year highs following more aggressive policy measures…
New home sales rose in August to a seasonally adjusted annual rate of 685,000, up 28.8% from July’s revised rate but down 0.1% YOY, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. The seasonally‐adjusted estimate of new houses for sale at the end of August was 461,000, representing a supply of 8.1 months at the current sales rate. The median sales price of a new home was $436,800, while the average sales price was $521,800. The data comes on the heels of a surprise increase in mortgage applications last week, despite rates rising to their highest point since October 2008. “As with the swings in rates and other uncertainties around the housing…
Mortgage loan application volume increased by 3.8% last week, breaking a multi-week pattern of steep declines, despite rates rising to their highest point since October 2008. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, rose by 3.8%. The results include an adjustment for Labor Day. The adjusted purchase index rose 1%, while the unadjusted purchase index increased 11% and was 30% lower YOY. The refinance index rosed by 10% and was 83% lower than the same time last year. Refis made up 32.5% of total applications. “Treasury yields continued to climb higher last week in anticipation of the Federal Reserve’s September meeting, where it is expected that they…
Mortgage loan application volume fell last week as mortgage rates topped 6% for the first time since 2008, nearly doubling year over year. The Mortgage Bankers Association’s weekly survey shows that the adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2%. The adjusted purchase index rose 0.2%, while the unadjusted purchase index dropped 12% and was 29% lower YOY. The refinance index dropped by 4% and was 83% lower than the same time last year. Refis made up 30.2% of total applications. “Higher mortgage rates have pushed refinance activity down more than 80 percent from last year and have contributed to more homebuyers staying on the sidelines. Government loans, which tend to be favored by…
Mortgage loan application volume fell last week, with both refis and purchase applications falling as interest rates hit their highest point since mid-June, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 0.8%. The adjusted purchase index fell 1%, while the unadjusted purchase index dropped 3% and was 23% lower YOY. The refinance index dropped by 1% and made up 30.7% of total applications, down 83% from the same time last year. “Mortgage rates moved higher over the course of last week as markets continued to re-assess the prospects for the economy and the path of monetary policy, with expectations for short-term rates to move and stay higher…
Mortgage loan application volume fell 3.7% last week, continuing a downward spiral as mortgage rates hit their highest point since mid-July, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 3.7%. The adjusted purchase index fell 2%, while the unadjusted purchase index dropped 4% and was 23% lower YOY. The refinance index dropped by 8% and made up 30.3% of total applications, down 83% from the same time last year. “Mortgage rates and Treasury yields rose last week as Federal Reserve officials indicated that short-term rates would stay higher for longer. Mortgage rates have been volatile over the past month, bouncing between 5.4% and 5.8%,” said Joel Kan,…
Affordability improved in July, with the national median payment applied for by applicants falling to $1,844 from $1,893 in June, the Mortgage Bankers Association (MBA) reported. MBA’s Purchase Applications Payment Index (PAPI) fell for a second consecutive month, down 3.8% to a reading of 157.7. PAPI measures monthly payments across time and relative to income, so this reading indicates that payments on new mortgages accounted for a smaller share of a typical person’s income. The improvement can be attributed to lower mortgage rates and less competition as more potential buyers are priced out of the market. Rates dipped to 5.13% last week, though they are back up this week. Additionally, purchase demand has declined sharply this year. Overall loan application…
Mortgage loan application volume fell 1.2% last week to a 22-year low as the 30-year fixed rate rose to its highest point in almost a month, the Mortgage Bankers Association’s weekly survey shows. The adjusted Market Composite Index, a measure of mortgage loan application volume, decreased by 1.2%. The adjusted purchase index fell 1% while the unadjusted purchase index dropped 2% and was 21% lower YOY. The refinance index dropped by 3% and made up 31.1% of total applications, down 83% from the same time last year. ARM activity fell to 6.5% of total applications. “Last week’s purchase results varied, with conventional applications declining 2% and government applications increasing 4%, which is potentially a sign of more first-time homebuyer activity.…
