Global| Sep 25 2013U.S. Mortgage Applications Increase Again As Interest Rates Decline
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that the total mortgage market index increased another 5.5% (-48.4% y/y) last week and added to its 11.2% increase during the prior week. Home purchase mortgage applications rose 6.6% (7.3% [...]
The Mortgage Bankers Association reported that the total mortgage market index increased another 5.5% (-48.4% y/y) last week and added to its 11.2% increase during the prior week. Home purchase mortgage applications rose 6.6% (7.3% y/y) but remained 9.1% below the early-May peak. Applications to refinance an existing loan gained 4.9% but remained down by nearly two-thirds from last September's peak.
The effective interest rate on a 15-year mortgage fell last week to 3.75%, down nearly 20 basis points from its early-month high. It remained up, however, versus the early-May low of 2.89%. The effective rate on a 30-year fixed rate loan also declined to 4.74% last week while the rate on a Jumbo 30-year loan fell to 4.75%. The effective interest rate on an adjustable 5-year mortgage fell w/w to 3.52% but remained up from its low of 2.59% at the beginning of May.
Applications for fixed interest rate loans fell by 49.7% y/y while adjustable rate loan applications were off 16.8% y/y. The average mortgage loan size jumped to $225,100. The average size loan for home purchases surged to $263,100 last week while for refinancings it shot up $200,700.
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.
| MBA Mortgage Applications (SA, 3/16/90=100) | 09/20/13 | 09/13/13 | 09/06/13 | Y/Y% | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 451.9 | 428.2 | 385.0 | -48.4 | 813.8 | 572.3 | 659.3 |
| Purchase | 200.6 | 188.1 | 183.6 | 7.3 | 187.8 | 182.6 | 199.8 |
| Refinancing | 1,889.2 | 1,801.7 | 1,528.5 | -61.6 | 4,505.0 | 2,858.4 | 3,348.1 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.75 | 3.89 | 3.93 | 3.08 (9/12) |
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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