Refinance activity now totals just 51% of applications which is the lowest level since July 2009.
Chicago, IL (PRWEB) April 09, 2014
Peoples Home Equity was once again, disappointed to see the Mortgage Bankers Association (MBA) release a negative report for mortgage applications. Meanwhile mortgage rate changes for last week were mixed for different types of home loan options.
The MBA report revealed on Wednesday, April 9th, that applications had declined -1.6% for the week ending on April 4th. The market consensus as shown on TradingEconomics.com was to see applications decline just -1.2%. Mortgage Applications have declined now for 3 consecutive weeks and 4 of the past 5 reports. In the one announcement where applications did increase, the number was a miniscule rise of 0.2%. The refinance share of mortgage activity decreased -3.77% week over week. Refinance activity now totals just 51% of applications which is the lowest level since July 2009.
Apart from mortgage applications, the MBA mentions that mortgage rates increased nearly across the board last week. The percentage of interest on a 30-year fixed rate mortgage remained the same at 4.56%.
The rate for a 30-year fixed rate jumbo loan rose from 4.46% to 4.49%. Meanwhile the rate on a 30-year fixed-rate FHA mortgage actually decreased from 4.21% to 4.19%! As for shorter term loans, 15-year fixed-rate mortgages remained constant at an average borrowing rate of 4.62, while 5/1 ARMs increased from 3.25% to 3.26%.
People Home Equity reminders readers demand for different types of financing is changing. As the refinance share of mortgage applications descends, purchase mortgages become the focus. Most individuals cannot afford a loan payment on shorter term loan such as a 15-year fixed or 5/1 ARM mortgage. Thus, mortgage rates are becoming more responsive to where most demand is at the 30-year level. The lender still expects a surprise surge in mortgage applications soon. This occurrence will more than offset the small week over week declines that have been announced over the past 3 weeks by the MBA.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: (855)-897-0300