Recent Updates

  • Hong Kong: Gold Trade (Jun)
  • China: Industrial Profits (Jun)
  • New Zealand: Household Living-costs Price Indexes (Q2)
  • Korea: GDP (Q2-advance), Retail Sales from MOTIE (Jun)
  • US: Texas Mfg Outlook Survey (Jul)
  • more updates...

Economy in Brief

U.S. Mortgage Loan Applications Bounce Back; Interest Rates Creep Higher
by Tom Moeller  June 11, 2014

The Mortgage Bankers Association reported that their total Mortgage Market Volume Index increased 10.3% last week (-42.3% y/y) following two weeks of decline. Nevertheless, applications remained two-thirds below the peak in September 2012. Applications to refinance an existing loan rose 11.0% (-54.0% y/y) to the highest level since mid-March while home purchase applications rose 9.3% (-13.6% y/y) to the highest level since late-January.

The effective interest rate on a 15-year mortgage rebounded last week to 3.49%, the highest level in four weeks. The effective rate on a 30-year fixed rate loan increased to 4.39%. The rate on a Jumbo 30-year loan gained to 4.30%. For adjustable 5-year mortgages, the effective interest rate jumped to 3.31%, its highest level since early-May.

The average mortgage loan size fell back to $247,000. The average loan size for home purchases declined to $276,300 and for refinancings it fell to $221,600.

Applications for fixed interest rate loans declined 42.9% y/y while adjustable rate loan applications were off by 34.2% 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.

Financial Stability and Monetary Policy: Happy Marriage or Untenable Union? from the Federal Reserve Bank of San Francisco is available here.

MBA Mortgage Applications (SA, 3/16/90=100) 06/06/14 05/30/14 05/23/14 Y/Y% 2013 2012 2011
Total Market Index 387.1 350.8 362.2 -42.3 616.6 813.8 572.3
 Purchase 187.5 171.6 178.1 -13.6 197.5 187.8 182.6
 Refinancing 1,528.9 1,377.4 1,418.6 -54.0 3,070.0 4,505.0 2,858.4
15-Year Mortgage Effective Interest Rate (%) 3.49 3.41 3.44 3.56
3.42 3.25 3.97
large image