Tag Archives: Mortgage Rates

Representing a nudge in the right direction for the origination market, the Mortgage Bankers Association (MBA) reported a 13 percent swell in home loan applications submitted last week, up from the record low reported just one week earlier. It was the biggest gain recorded in three months. Michael Fratantoni, MBA's VP of research and economics, says low rates are driving consumers back to loans. Rates have dropped over eight of the last nine weeks - a primary driver for homeowners looking to refinance. MBA's Refinance Index jumped 16.5 percent.

Mortgage lenders across the country have reported layoffs and substantial downsizing, a consequence of heightened regulatory scrutiny, weak job growth, and brittle markets slumbering in the wake of diminishing consumer confidence. Despite a small spurt in refinancing measures and a drop in lending rates to their lowest ebb since the turn of the century, origination loan volume remains low, and lenders are coming to terms with the fact that they will be financing fewer mortgages over a longer-than-expected period.

The Department of Treasury and HUD jointly released the Housing Scorecard for May on Thursday, finding that housing markets remain fragile with a seven-month stretch of declining home prices. The scorecard tracks monthly housing and economic data. The May edition called housing prices weak, noting only a minor boost for sales in April. Other industry reports echo the assessment with mortgage applications still falling, eroding home equity, and weak job growth -- all impacting the mortgage market.

Surveys released by Bankrate and Freddie Mac on Thursday confirm a continuing slide in fixed and adjustable mortgage rates, with analysts attributing the declines to news about weak job growth. Figures in Freddie Mac's report trended alongside those in Bankrate's weekly survey to reveal a decline for 30-year fixed-rate averages to 4.49 percent and 4.65 percent, respectively. Bankrate says its findings reflect a straight nine-week fall for mortgage rates, made more unstable by restive housing markets and long-term government debt.

Mortgage loan applications fell by 0.4 percent nationwide over the last week, spreading unease among lenders concerned about the potential for a dip in the housing market, according to a study released by the Mortgage Bankers Association (MBA) on Wednesday. The decline in loan applications coincides with the lowest rates for mortgages in the last six months and the fewest applications for home purchases in nearly 15 years. Market analysts say people are "nervous," which can preclude signing on the bottom line to buy a home.

Homebuyers can now review the latest mortgage loan quotes right from their phone for loan shopping on the go. On Tuesday, Zillow released a statement publicizing the launch of its newest innovation: a mobile app that allows iPhone users to navigate the mortgage market and receive the latest custom quotes from lenders and mortgage bankers, with tools to determine the amount of their monthly payments and decide whether refinancing packages would make sense for their homes.