Global| May 11 2016U.S. Mortgage Loan Applications Are Little Changed; Financing Rates Ease
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that its total Mortgage Market Volume Index nudged 0.4% higher last week (18.9% y/y) following a 3.4% decline. Purchase applications also improved 0.4% (14.0% y/y) after little change in the [...]
The Mortgage Bankers Association reported that its total Mortgage Market Volume Index nudged 0.4% higher last week (18.9% y/y) following a 3.4% decline. Purchase applications also improved 0.4% (14.0% y/y) after little change in the prior week while application to refinance rose 0.5% (23.0% y/y) after a 5.5% drop.
The effective interest rate on a 15-year mortgage fell to 3.15%, and reversed the prior week's rise. Rates remained down from the 3.50% highs of November and December. The effective rate on a 30-year fixed-rate loan of 3.92% also was lower versus 4.28% near year-end. The rate on a Jumbo 30-year loan was little changed w/w at 3.83%. For adjustable 5-year mortgages, the effective interest rate was 3.01%.
The average mortgage loan size increased w/w to $283,700 (5.5% y/y). For purchases, it rose to $305,200 (2.2% y/y); for refinancings, it firmed to $264,400 (10.1% y/y).
Applications for fixed interest rate loans increased 19.6% y/y, while adjustable-rate loan applications rose 8.0% y/y.
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. 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.
Consumers' Income Growth Expectations Strengthen, Labor Market Expectations Weaken Slightly from the Federal Reserve Bank of New York is available here.
| MBA Mortgage Applications (%, SA) | 05/06/16 | 04/29/16 | 04/22/16 | Y/Y | 2015 | 2014 | 2013 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 0.4 | -3.4 | -4.1 | 18.9 | 17.9 | -41.4 | -24.2 |
| Purchase | 0.4 | -0.1 | -2.4 | 14.0 | 15.5 | -12.9 | 5.2 |
| Refinancing | 0.5 | -5.5 | -5.0 | 23.0 | 15.1 | -52.8 | -31.9 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.15 | 3.22 | 3.18 | 3.33 | 3.37 | 3.54 | 3.42 |
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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