Global| Aug 07 2013U.S. Home Mortgage Applications and Interest Rates Are Stable
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that total applications for a home mortgage were fairly stable last week. The total market index ticked up 0.2% (-46.75 y/y) but that was set against a decline since early-May of 47.6%. Home [...]
The Mortgage Bankers Association reported that total applications for a home mortgage were fairly stable last week. The total market index ticked up 0.2% (-46.75 y/y) but that was set against a decline since early-May of 47.6%. Home purchase mortgage applications nudged 0.1% higher (7.6% y/y) but they've fallen 12.5% since the early-May peak. Applications to refinance an existing loan slipped 0.1% (-58.0% y/y.
Applications for fixed interest rate loans fell by 47.8% y/y while adjustable rate loan applications were off 19.7% y/y. The average mortgage loan size was $212,900. The average size loan for home purchases was $258,200 last week while for refinancings it was $186,100.
The effective interest rate on a 15-year mortgage held steady last week at 3.77%. That remained up, however, from the early-May low of 2.89%. The effective rate on a 30-year fixed rate loan nudged up to 4.73% last week while the rate on a Jumbo 30-year loan edged lower to 4.73%. The 96 basis point spread between 15- and 30-year loan rates remained near the record. The effective interest rate on an adjustable 5-year mortgage held steady w/w at 3.53% but remained up from its low of 2.59% at the beginning of May.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. 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.
Fiscal Policy and Monetary Policy: Restoring the Boundaries by Charles I. Plosser, President and Chief Executive Officer, Federal Reserve Bank of Philadelphia is available here.
| MBA Mortgage Applications (SA, 3/16/90=100) | 08/02/13 | 07/25/13 | 07/19/13 | Y/Y% | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 495.4 | 494.4 | 513.3 | -46.7 | 813.8 | 572.3 | 659.3 |
| Purchase | 193.1 | 191.7 | 198.5 | 7.6 | 187.8 | 182.6 | 199.8 |
| Refinancing | 2,244.7 | 2,247.6 | 2,336.2 | -58.0 | 4,505.0 | 2,858.4 | 3,348.1 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.77 | 3.77 | 3.72 | 3.22 (8/12) |
3.25 | 3.97 | 4.39 |
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.
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