Global| Oct 28 2015U.S. Mortgage Loan Applications Ease
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that its total Mortgage Market Volume Index declined 3.5% in the latest week (+8.1% y/y) following an 11.8% rise during the prior period. The Association indicated that extreme volatility in [...]
The Mortgage Bankers Association reported that its total Mortgage Market Volume Index declined 3.5% in the latest week (+8.1% y/y) following an 11.8% rise during the prior period. The Association indicated that extreme volatility in earlier weeks was caused by new mortgage disclosure rules for lenders which took effect on October 3. Home purchase applications fell 3.1% last week (+23.2% y/y) while applications to refinance a mortgage loan declined 3.8% (-0.4% y/y).
The effective interest rate on a 15-year mortgage rose slightly to 3.33% but remained near the lowest point since early-May. The effective rate on a 30-year fixed rate loan held fairly steady w/w at 4.10% and the rate on a Jumbo 30-year loan was 3.97%. For adjustable 5-year mortgages, the effective interest rate backed up to 3.16%.
The average mortgage loan size eased to $273,300 (+1.0% y/y. For purchases, it notched higher to $297,600 (4.9% y/y) but for refinancings it declined to $256,700 (-2.6% y/y).
Applications for fixed interest rate loans increased 10.0% y/y, while adjustable rate loan applications they fell 13.0% 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.
| MBA Mortgage Applications (SA, 3/16/90=100) | 10/23/15 | 10/16/15 | 10/09/15 | Y/Y % | 2014 | 2013 | 2012 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 417.4 | 432.7 | 387.0 | 8.1 | 361.5 | 616.6 | 813.8 |
| Purchase | 191.2 | 197.4 | 169.6 | 23.2 | 172.1 | 197.5 | 187.8 |
| Refinancing | 1,707.9 | 1,774.7 | 1,631.4 | -0.4 | 1,449.8 | 3,070.0 | 4,505.0 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.33 | 3.28 | 3.30 | 3.44 (10/14) |
3.54 | 3.42 | 3.25 |
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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