Total Mortgage Applications Decrease But Purchase Applications Rise
Chicago, IL (PRWEB) November 13, 2014 -- Lenders like Peoples Home Equity were a bit disappointed today to see that mortgage applications declined -0.9% for the week ending on Friday, November 7th.
According to the latest Mortgage Bankers Association (MBA) weekly application survey report, mortgage applications decreased due to combination of performance from its Refinance and Purchase Index. The MBA’s “Refinance Index decreased 2 percent from the previous week” while “The seasonally adjusted Purchase Index increased 1 percent from one week earlier.” Peoples Home Equity is actually expecting refinance activity to decrease further with the rise of interest rates in the future. The lender also expects purchase mortgage activity to be seasonal strong this winter since unemployment is low and wages are rising.
In terms of the total sub of application activity, “The refinance share of mortgage activity remained unchanged at 63 percent of total applications from the previous week.” Adjustable rate mortgage applications decreased to 7.1% to an 11 month low. FHA applications “increased to 9.6 percent this week from 9.5 percent last week.” VA home loans also increased to 11% from 10.7% the week prior.
As for interest rates, the average contract rate for 30-year fixed rate loan with a loan balance of less than $417,000 rose to 4.19% from 4.17% the week prior. Average points increased to 0.26% from 0.22%.
For 30-year Jumbo loans with balances over $417,000, the interest rate remained unchanged at 4.13%, “with points increasing to 0.15 from 0.11 (including the origination fee) for 80 percent LTV loans.”
FHA 30-year loans experienced a rise to 3.9% from 3.84% while points decreased substantially from 0.34 0.14!
15-year fixed rate mortgages remained unchanged at 3.38%, and points decreased from 0.31 to 0.22.
As for ARM’s the interest rate decreased to 3.05% from 3.08% which has been interesting for many prospective applicants. Mortgage rate spectators have noticed that ARM rates do not necessarily move hand-in-hand with the direction of weekly interest rates changes. Points also decreased, marginally for ARM’s to 0.32 from 0.33.
Contact a Peoples Home Equity loan officer today at: 262-563-4026
Giorgio U Ferrero, Peoples Home Equity, http://www.peopleshomeequity.com/index.php/main, +1 8473386062, [email protected]
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