Global| Sep 09 2020Mortgage Loan Applications Rebound as Rates Ease Again
by:Tom Moeller
|in:Economy in Brief
Summary
• Applications for both purchase and refinancings increase. • Mortgage rates approach record low. The Mortgage Bankers Association Mortgage Loan Applications Index increased 2.9% (36.3% y/y) in the week ended September 4, following [...]
• Applications for both purchase and refinancings increase.
• Mortgage rates approach record low.
The Mortgage Bankers Association Mortgage Loan Applications Index increased 2.9% (36.3% y/y) in the week ended September 4, following three straight weeks of decline.
The 30-year fixed rate interest rate eased to 3.17% and was just above its recent low reached in the week of August 7. The rate on 15-year loans fell to a record low 2.71%. The effective rate for a Jumbo mortgage loan fell to 3.49%. The rate on the 5-year adjustable rate mortgage declined to 3.20%
Applications for purchase loans rose 2.6% (25.3% y/y) last week after edging 0.2% lower in the previous week. Refinancing applications rebounded 3.0% (43.6% y/y) after a 3.1% drop in the previous week.
The average mortgage loan size fell 0.9% (-4.3% y/y) to $323,200. The average size of a purchase loan edged 0.2% higher (13.4% y/y) to $368,600 while the average loan size to refinance fell 1.5% (-14.3% y/y) to $296,600.
Applications for fixed-rate loans rose 41.1% y/y, while applications for adjustable rate mortgages declined 45.1% 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 all indexes 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) | 09/04/20 | 08/28/20 | 08/21/20 | Y/Y | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 2.9 | -2.0 | -6.5 | 36.3 | 32.4 | -10.4 | -17.8 |
| Purchase | 2.6 | -0.2 | 0.4 | 25.3 | 6.6 | 2.1 | 5.6 |
| Refinancing | 3.0 | -3.1 | -10.2 | 43.6 | 71.1 | -24.3 | -34.0 |
| 30-Year Effective Mortgage Interest Rate (%) | 3.17 | 3.19 | 3.22 |
4.03 |
4.34 | 4.94 | 4.32 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
