Global| Jun 24 2020U.S. Mortgage Loan Applications Decline
by:Tom Moeller
|in:Economy in Brief
Summary
• Loan applications for purchase ease. • Refinancing declines. • 15-year fixed-rate mortgage remains near seven-year low. The Mortgage Bankers Association reported that its total Mortgage Applications Index backpedaled by 8.7% (+48.0% [...]
• Loan applications for purchase ease.
• Refinancing declines.
• 15-year fixed-rate mortgage remains near seven-year low.
The Mortgage Bankers Association reported that its total Mortgage Applications Index backpedaled by 8.7% (+48.0% y/y) during the week ending June 19 after rising 8.0% in the prior week. Applications to purchase a home fell 3.0% (+18.1% y/y) following a 3.5% rise. Applications to refinance a loan declined 11.7% (+76.2% y/y), reversing the 10.3% gain during the prior week.
The effective interest rate on a 15-year fixed-rate mortgage edged higher to 2.89%. Thirty-year fixed rates rose to 3.39% while 30-year jumbo rates fell to 3.70%. Five-year adjustable rates worked lower to 3.09%.
The average mortgage loan size rose to $326,300 (-5.4% y/y) but remained below the early-March high of $367,900. For purchases, the average loan size increased to $359,200 (11.0% y/y) while refinancing loans eased to $305,500 (-16.3% y/y).
Applications for fixed-rate loans increased 54.5% y/y, while adjustable rate mortgages fell 29.3% 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 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) | 06/19/20 | 06/12/20 | 06/05/20 | Y/Y | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Total Market Index | -8.7 | 8.0 | 9.3 | 48.0 | 32.4 | -10.4 | -17.8 |
| Purchase | -3.0 | 3.5 | 5.3 | 18.1 | 6.6 | 2.1 | 5.6 |
| Refinancing | -11.7 | 10.3 | 11.4 | 76.2 | 71.1 | -24.3 | -34.0 |
| 15-Year Effective Mortgage Interest Rate (%) | 2.89 | 2.87 | 2.89 |
3.54 |
3.71 | 4.35 | 3.59 |
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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