Mortgage APs Highest in 6 Months
November 24, 2010 by admin
Filed under Mortgages, Positive Real Estate, Real Estate Articles
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U.S. mortgage applications for home purchases rose to their highest level in more than six months last week, buoying activity otherwise weighed down by waning refinancing, an industry group reported on Wednesday.
The Mortgage Bankers Association’s seasonally adjusted purchase applications index jumped 14.4 percent to 205.0 in the week ended Nov. 19, the highest since the week ending May 7, the MBA said on Wednesday. The refinancing index slumped 1 percent to 3,793.6.
The composite index, which includes loans for home purchases and refinancings, increased 2.1 percent to 728.8, the MBA said.
“The increase in purchase applications last week aligns with other incoming data suggesting that consumers are feeling somewhat more confident with their financial situation,” Michael Fratantoni, the MBA’s vice president of research and economics, said in a statement.
Reuters
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Mortgage Aps Jump
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The MBA mortgage applications index jumped 14.6% to 897.2% for the week ending October 8. This was the first increase in 6 weeks for the largest rise since mid-June and its biggest since May 2009. Mortgage activity is 20.8% up year over year. Refinances jumped 21.0% on the week and is up 50.0% from a year ago. Refinancing is more than 80% of total new mortgage activity.
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- Mortgage refinancing requests climb 21 percent (seattletimes.nwsource.com)
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Lenders Cushion Loan Pricing After Spike in Refinance Demand
August 20, 2010 by admin
Filed under Positive Real Estate
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Los Angeles, Calif. (VOCUS)
The Mortgage Bankers Association (MBA) released its results to its Weekly Survey. This survey covers over 50% of all U.S. residential mortgage loan applications taken by retail mortgage bankers, commercial banks, and thrifts. This extremely accurate data gives economists a great look into the consumer demand for mortgage loans. This trend of increasing refinance applications implies consumers are seeking out a lower monthly payment, a fairly predictable assessment. But, the long term effects of this action paint a better picture.
If these consumers are actually able to reduce their monthly mortgage payments they will increase their disposable income, or their “spending money”, giving them the opportunity to spend that spending money which would in turn revitalize the economy. This would create more consumer spending or even allow debtors to pay down personal liabilities like credit cards. This effect could spiral to astronomical proportions because as the more people spend their surplus disposable income, the better the economy gets and the lower the mortgage payments are, creating the effect all over again.
