Global| Mar 27 2013U.S. Mortgage Applications Recover As Interest Rates Level Off
by:Tom Moeller
|in:Economy in Brief
Summary
The housing market remains firm. The index of total mortgage applications increased 7.7% (24.1% y/y) last week and reversed the prior week's decline, according to the Mortgage Bankers Association. Home purchase applications posted a [...]
The housing market remains firm. The index of total mortgage applications increased 7.7% (24.1% y/y) last week and reversed the prior week's decline, according to the Mortgage Bankers Association. Home purchase applications posted a 6.7% increase (9.9% y/y) and recovered declines during the prior two weeks. Applications to refinance an existing loan rose 8.0% (29.0% y/y) and reversed one week of decline.
The effective rate on fixed-interest, conventional 15-year mortgages of 3.13% remained up from December's weekly low of 2.89%. The effective rate on a 30-year fixed rate loan was 3.92% last week while the rate on a Jumbo 30-year loan was 4.02%. Though it's recently narrowed, the spread between 15- and 30-year loan rates continued wide by historical standards. The effective interest rate on an adjustable 5-year mortgage was 2.70%.
Applications for fixed interest rate loans rose by one-quarter y/y while adjustable rate loan applications gained 6.6% y/y. The average mortgage loan size was $214,200. The average size loan for home purchases was $262,700 last week while for refinancings it was $198,100.
The Mortgage Bankers Association surveys between 20 to 35 of the top lenders in the U.S. housing industry to derive its refinance, purchase and market indexes. The weekly survey covers roughly 50% of all U.S. residential mortgage applications processed each week by mortgage banks, commercial banks and thrifts. The figures for weekly mortgage applications are available in Haver's SURVEYW database.
| MBA Mortgage Applications (SA, 3/16/90=100) | 03/22/13 | 03/15/13 | 03/08/13 | Y/Y% | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 823.7 | 765.1 | 823.7 | 24.1 | 813.8 | 572.3 | 659.3 |
| Purchase | 209.5 | 196.4 | 204.3 | 9.9 | 187.8 | 182.6 | 199.8 |
| Refinancing | 4,436.6 | 4,108.8 | 4,466.8 | 29.0 | 4,505.0 | 2,858.4 | 3,348.1 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.13 | 3.11 | 3.12 | 3.51 (3/12) |
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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