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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Mortgage Refinancings Soar to Highest Level Since May 2009
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The Mortgage Bankers Association said Wednesday its refinancing index jumped 17% to 4676.70 in the week to Wednesday, soaring to the highest since May 2009. The four-week average increase rose to 3.2%. This abrupt spike is a sign that mortgage rates have fallen far enough to incentivize a new wave of refinancing from homeowners. According for Freddie Mac, the average rate for a 30- year home loan dropped to 4.4A% last week.
This wave could also be a great sign for the U.S. economy as a whole, not just the housing market. Morgan Stanley estimates that if 50% of mortgages in mortgage-backed bonds are refinanced, it would free up $46 billion a year for consumers. $46 billion is more money than the last extension of unemployment benefits.
