Home mortgage applications decreased 9.2 percent from one week previously, according to data from the Mortgage Bankers Association’s (MBA) Weekly Home Mortgage Applications Study for the week ending November 29,2019 This week’s outcomes consist of a modification for the Thanksgiving holiday.
… The Refinance Index reduced 16 percent from the previous week and was 61 percent greater than the very same week one year earlier. The seasonally changed Purchase Index increased 1 percent from one week earlier The unadjusted Purchase Index decreased 33 percent compared with the previous week and was 24 percent lower than the very same week one year ago.
U.S. Treasury rates stayed flat last week, as unpredictability surrounding the U.K. elections balance out favorable domestic news on consumer costs,” stated Joel Kan, MBA’s Partner Vice President of Economic and Market Forecasting.97 percent, mortgage applications fell last week, driven down by a 16 percent drop in refinances. Purchase applications were up somewhat but decreased 24 percent from a year back.
Added Kan, “The purchase market in general looks healthy as we get in the home stretch of2019 The seasonally changed purchase index was at its greatest level considering that July, as a combination of wage gains, slower home-price appreciation, and slightly easing inventory conditions continue to support increased activity.”
The average contract interest rate for 30- year fixed-rate home loans with conforming loan balances ($484,350 or less) stayed the same at 3.30(including the origination charge) for 80 percent loan-to-value ratio (LTV) loans.
The first graph shows the refinance index given that 1990.
With lower rates, we saw a sharp boost in refinance activity, but home mortgage rates would have to decline additional to see a substantial refinance boom.
According to the MBA, purchase activity is down 24%year-over-year unadjusted for the Thanksgiving vacation (the timing of the Vacation was various in 2019 compared to 2018).