Global| Feb 12 2020U.S. Mortgage Applications for Loan Refinance Increase
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that its Mortgage Loan Index increased 1.1% during the week of February 7 following two weeks of strong gain. Applications to refinance a loan strengthened 5.0% (206.5% y/y) and added to the [...]
The Mortgage Bankers Association reported that its Mortgage Loan Index increased 1.1% during the week of February 7 following two weeks of strong gain. Applications to refinance a loan strengthened 5.0% (206.5% y/y) and added to the prior week's 15.3% rise. Purchase applications declined 5.8% (+16.8% y/y), down for the second straight week.
The contract interest rate on a 30-year fixed-rate mortgage of 3.72% remained near the lowest reading since October 2016. This rate was below its high of 5.17% reached early in November 2018. The contract rate on a 15-year fixed-rate loan also was little changed w/w at 3.20%. The contract rate on a 30-year Jumbo mortgage edged higher to 3.75% from 3.70%. The interest rate on an adjustable rate mortgage eased to 3.21% and remained near the lowest level since September 2017.
The average mortgage loan size increased to $347,100 (12.5% y/y). The average loan size for purchases rose to $347,300 (10.6% y/y). The average loan size for refinancings increased to $347,000 (15.3% y/y).
Applications for fixed-rate loans surged 98.7% y/y while applications for adjustable rate loans strengthened 58.1% 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 each index is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver's SURVEYW database.
The Opportunities of a Tight Labor Market from Patrick T. Harker, President & CEO, Federal Reserve Bank of Philadelphia is available here.
| MBA Mortgage Applications (%, SA) | 02/07/20 | 01/31/20 | 01/24/20 | Y/Y | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 1.1 | 5.0 | 7.2 | 95.5 | 32.4 | -10.4 | -17.8 |
| Purchase | -5.8 | -9.5 | 5.3 | 16.8 | 6.6 | 2.1 | 5.6 |
| Refinancing | 5.0 | 15.3 | 7.5 | 206.5 | 71.1 | -24.3 | -34.0 |
| 30-Year Mortgage Contract Interest Rate (%) | 3.72 | 3.71 | 3.81 | 4.66 (Feb.'19) | 4.22 | 4.80 | 4.21 |
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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