Tag Archives: Mortgage Applications

More applications ticked up as record-low mortgage rates spurred refinance applications to their highest level since April 2009. The Mortgage Bankers Association found that applications increased 0.9 percent from the week before. The Refinance Index climbed by 2 percent to reach the highest level in three years, with the refinance share of activity ticking up to 81 percent of application volume from 80 percent last week. The adjustable-rate mortgage share of activity amounted to 4 percent of total volume from the week before.

Increased home sales continue to help the United States out of its Great Recession, but uneven job growth is stunting recovery, according to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós U.S. Economic and Housing Market Outlook for July. The report, released Wednesday, showed that record-breaking low mortgage rates and refinances through HARP 2.0 drove up housing demand, leading to increases in housing starts, home sales, and prices in many markets. Housing starts for the first five months of the year averaged an annual rate of 719,000, a 26 percent increase from the same period in 2011.

Improvements in mortgage banking and credit quality helped Wells Fargo see income gains for the second quarter of 2012. On Friday, Wells Fargo reported a net income of $4.6 billion, or $0.82 per share. The reported earnings for the most recent quarter was an 18 percent increase from the same quarter a year ago, when net income was $3.9 billion, or $0.70 per share. Net income for the most recent quarter was also up from the previous quarter when net income was $4.2 billion, or $0.75 per share.

Rallying investors by end of day Friday, JPMorgan Chase posted strong earnings from the second-quarter, with Home Affordable Refinance Program modifications helping boost income for the laggardly mortgage servicing unit year-over-year. For mortgage production and servicing, the financial institution fielded $604 million in net income over the second quarter, a figure that trumps a net loss of $649 million from the past year. Mortgage production rose to $931 million in pretax income for the lender.

Mortgage applications fell 2.1 percent from the week before, according to the Mortgage Bankers Association. The trade group found declines for applications amid new historic lows for mortgage rates. According to the MBA, average contract interest rates for home loans broke new records across the board. New lows for interest rates included the 30-year fixed-rate mortgage with conforming balances (3.79 percent), the 30-year loan with jumbo loan balances (4.05 percent), and the 15-year loan (3.15 percent). Five-year and one-year adjustable-rate mortgages likewise fell to a new low of 2.71 percent.

The CFPB has officially proposed mortgage disclosure forms designed to enhance understanding. The forms are a result of research, testing, writing, and review and are being created to help consumers comprehend the terms of their mortgage and the costs involved. The proposed forms are part of the agency's Know Before You Owe project and are to be provided after applying for a loan and before closing."When making what is likely the biggest purchase of their life, consumers should be looking at paperwork that clearly lays out the terms of the deal," said CFPB Director Richard Cordray.

Mortgage applications decreased 6.7 percent over the week ending June 19, while interest rates also fell, finding new lows in some categories, according to the Mortgage Bankers Association. Refinances still make up a majority of applications ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô 78 percent for the week, slightly lower than the 79 percent share recorded the previous week. The amount of refinance applications fell 8 percent over the week. HARP 2.0 refinance applications stood at 20 percent three weeks ago but have been at 24 percent for the past two weeks.

Mortgage applications decreased 7.1 percent over the week last week with an 8 percent decline in refinance applications contributing largely to the decrease, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The decline was the same for an unadjusted and seasonally adjusted index. The percentage of mortgage applications made up by refinance applications fell slightly from 80 percent the previous week to 79 percent for the week. Interest rates for 30-year fixed-rate loans ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô with both conforming and jumbo loan balances ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô increased slightly for the week.

HUD rescinded guidance Friday that would have obligated homeowners to resolve debts outstanding of $1,000 or more or enter into a repayment plan by closing time for a mortgage backed by the Federal Housing Administration. Guidance from February required that lenders with homeowners in dispute of credit accounts or collections in that amount resolve or pay down the debt in order to meet eligibility criteria for a FHA-insured loan. That policy would have gone into effect by July 1, although earlier guidance remains.

The combination of low housing prices and the comparative weakness of the dollar continues to push foreign buyers to the United States, raising international home sales to $82.4 billion up from $66.4 billion last year, according to the National Association of Realtors 2012 Profile of International Home Buying Activity. NAR conducted the survey and asked realtors to report their international business activities within the United States for the 12 months ending March 2012. Twenty-seven percent reported having worked with international clients this year.