Tag Archives: Refinance

Mortgage application volume declined once again for the week ending November 15, the Mortgage Bankers Association (MBA) reported in its Weekly Mortgage Applications Survey.

Mortgage applications continued to dip last week as November got under way, the Mortgage Bankers Association (MBA) reported in its Weekly Mortgage Applications Survey. The survey's Market Composite Index, a measure of loan application volume, fell 1.8 percent for the week ending November 8. Volume data for the week ending November 1 was revised upward to reflect a 2.8 percent drop (compared to the originally reported 7 percent decrease). On an unadjusted basis, last week's index was down 3 percent.

According to the results of Freddie Mac's latest quarterly refinance analysis, the average interest rate reduction among those who refinanced in Q3 was about 1.8 percentage points, representing a savings of about 30 percent ($3,500 over 12 months on a $200,000 loan). For borrowers who refinanced last quarter, the estimated interest savings over the next year will be about $6 billion. For those who refinanced through the Home Affordable Refinance Program (HARP), the average rate reduction in Q3 was 1.9 percent points.

When it comes to next year's regulatory obstacles, CEOs and senior executives from the mortgage industry's biggest players agree on one thing: Education will be key to keeping business going. In a panel at the 2013 Realtors Conference and Expo, high-level names from Quicken Loans, Wells Fargo Home Mortgage, JPMorgan Chase, and Bank of America discussed the qualified mortgage (QM) guidelines. While the initial implementation of these rules is expected to restrict lending in the short-term, panelists agreed that business should even out.

Mortgage application volume increased throughout October, but a substantial decline recorded in the month's final days has experts at Capital Economics doubting that the trend will continue for the time being. Using application numbers released by the Mortgage Bankers Association (MBA), Capital Economics calculated a 7.5 percent increase in applications in October, pulling activity up from a five-month streak of declines. However, for the week ending November 1, MBA reported a 7.0 percent drop.

On net, a "moderate fraction" of banks polled in the Fed's Senior Loan Officer Survey reported easing standards on prime residential mortgages from August to October, with a net 8.8 percent saying credit standards have "eased somewhat." Among large banks, a net 26.5 percent reported somewhat looser standards. Meanwhile, however, demand has declined for both prime and nontraditional mortgages as mortgage rates bounce upward. Among all respondents, a net 7.2 percent reported moderately or substantially weaker demand.

After staying mostly flat through mid-October, mortgage application volume jumped for the week ending October 25, the Mortgage Bankers Association (MBA) found in its Weekly Mortgage Applications Survey. MBA's Market Composite Index, a measure of loan application volume, increased 6.4 percent on a seasonally adjusted basis from the prior week. Having experienced a shaky summer, the Refinance Index bumped up 9 percent week-over-week.

Next year's mortgage numbers are on track to fall off by nearly a third as the decline in refinances outpaces the slow growth of purchase originations, according to an MBA forecast.

September marked the third straight month of declining business for Freddie Mac, with purchases and issuances coming in at their lowest level in almost a year and a half. Freddie Mac's total mortgage portfolio shrank at an annualized rate of 4.3 percent in September, contracting at a slightly lessened pace compared to August's -5.0 percent growth rate. New business fell for the second straight month, with purchases and issuances totaling approximately $28.2 billion--the lowest since April 2012 ($25.9 billion).

The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey shows loan application volume fell a seasonally adjusted 0.6 percent for the week ending October 18.