Recent Updates
- Flash PMIs: Japan (Jan)
- UK: Gfk Consumer Confidence Barometer (Jan)
- Japan: CPI (Dec)
- US: New Residential Construction (Dec)
- more updates...
Economy in Brief
Philadelphia Fed Manufacturing Index Jumps in January
The Federal Reserve Bank of Philadelphia Factory Sector Business Conditions Index jumped to January to 26.5...
U.S. Initial Jobless Claims Ease, but Are Still High
Initial claims for unemployment insurance fell to 900,000 in the week ended January 16...
French Surveys Improve Despite Ongoing Virus Issues
The spread of the virus in Franc is still untamed...
U.S. Home Builder Sentiment Slips in January
The Composite Housing Market Index from the NAHB-Wells Fargo declined 3.5% m/m (+10.7% y/y) in January...
Decline in Refinancing Drags Down U.S. Mortgage Applications
The MBA Mortgage Loan Applications Index fell 1.9% w/w (+56.2% y/y) in the weekend January 15...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller March 18, 2020
The Mortgage Bankers Association reported that its Mortgage Loan Application Index weakened 8.4% (+175.3% y/y) during the week ending March 13 after a 55.4% jump in the prior week. The decline occurred as refinancings fell 10.4% (+401.5% y/y), and purchase applications eased 0.9% (+10.6% y/y), following the prior week's 5.6% rise.
The effective interest rate on a 15-year fixed rate mortgage rose to 3.20% from 2.97% in the week ended March 6. The rate remained well below its recent peak of 4.71% in early November 2018. The effective interest rate on the 30-year fixed rate mortgage also rose to 3.85% from 3.55% the previous week. The effective rate on a 30-year Jumbo mortgage increased to 3.87%, and the rate on the 5-year adjustable rate mortgage rose to 3.26%.
The average mortgage loan size fell to $352,200 last week (+9.5% y/y). The average loan size of refinancings declined to $350,700 (+12.2% y/y). The average loan size for purchases rose to $356,800 (8.9% y/y).
Applications for fixed-rate loans were up 177.6% y/y, while applications for adjustable rate loans moved up 145.0% y/y.
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for each index is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver's SURVEYW database.
MBA Mortgage Applications (%, SA) | 03/13/20 | 03/06/20 | 02/28/20 | Y/Y | 2019 | 2018 | 2017 |
---|---|---|---|---|---|---|---|
Total Market Index | -8.4 | 55.4 | 15.1 | 175.3 | 32.4 | -10.4 | -17.8 |
Purchase | -0.9 | 5.6 | -2.7 | 10.6 | 6.6 | 2.1 | 5.6 |
Refinancing | -10.4 | 78.6 | 26.0 | 401.5 | 71.1 | -24.3 | -34.0 |
15-Year Effective Mortgage Interest Rate (%) | 3.20 | 2.97 | 3.09 | 4.13 | 3.71 | 4.35 | 3.59 |
30-Year Effective Mortgage Interest Rate (%) | 3.85 | 3.55 | 3.65 | 4.77 | 4.34 | 4.94 | 4.32 |