Global| Jul 09 2014U.S. Mortgage Loan Applications Improve While Interest Rates Remain Unchanged
by:Tom Moeller
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that their total Mortgage Market Volume Index moved 1.9% higher last week (-33.6% y/y) to the highest level in four weeks. Applications remained two-thirds below the peak in September 2012. [...]
The Mortgage Bankers Association reported that their total Mortgage Market Volume Index moved 1.9% higher last week (-33.6% y/y) to the highest level in four weeks. Applications remained two-thirds below the peak in September 2012. Home purchase applications improved 3.7% (-9.9% y/y) while applications to refinance an existing loan inched 0.4% higher (-45.9% y/y).
The effective interest rate on a 15-year mortgage held steady last week at 3.46%, the lowest level since late-May. The effective rate on a 30-year fixed rate loan ticked up to 4.36%. The rate on a Jumbo 30-year loan was fairly steady at 4.29%. For adjustable 5-year mortgages, the effective interest rate also was nearly unchanged at 3.35%, its highest level since early-May.
The average mortgage loan size held steady at $247,400. The average loan size for home purchases was $275,700 and for refinancings it inched up to $220,900.
Applications for fixed interest rate loans declined 34.7% y/y while adjustable rate loan applications were off by 18.7% 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.
Households Ease Up on Adding New Debt from the Federal Reserve Bank of Cleveland can be found here.
| MBA Mortgage Applications (SA, 3/16/90=100) | 06/04/14 | 06/27/14 | 06/20/14 | Y/Y% | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Total Market Index | 353.9 | 347.3 | 348.1 | -33.6 | 616.6 | 813.8 | 572.3 |
| Purchase | 181.7 | 175.2 | 176.4 | -9.9 | 197.5 | 187.8 | 182.6 |
| Refinancing | 1,328.9 | 1,323.9 | 1,322.6 | -45.9 | 3,070.0 | 4,505.0 | 2,858.4 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.46 | 3.46 | 3.52 | 3.79 (7/13) |
3.42 | 3.25 | 3.97 |
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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