Mortgage applications decreased 5.0 percent from one week earlier, according to information from the Mortgage Bankers Association’s (MBA) Weekly Home Loan Applications Survey for the week ending December 13, 2019.
… The Refinance Index reduced 7 percent from the previous week and was 135 percent higher than the exact same week one year back. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier The unadjusted Purchase Index reduced 6 percent compared with the previous week and was 10 percent higher than the very same week one year ago
” Home loan rates were mainly the same, even as a potential trade offer between the U.S. and China triggered rates to inch forward at the end of recently,” said Mike Fratantoni, MBA Senior Vice President and Chief Financial Expert. “With rates revealing little meaningful motion, both refinance and purchase activity took an action back. As we move into the slowest time of the year for house sales, purchase application volume is decreasing but continues to outshine year-ago levels, when rates were much greater. Purchase activity was 10 percent greater than a year ago.”
Added Fratantoni, “2019 was another year of insufficient real estate supply in relation to demand.
The average agreement interest rate for 30- year fixed-rate mortgages with adhering loan balances ($484,350 or less) stayed unchanged at 3.33(consisting of the origination charge) for 80 percent loan-to-value ratio (LTV) loans.
The very first chart shows the refinance index considering that 1990.
With lower rates, we saw a sharp increase in re-finance activity, but mortgage rates would need to decrease further to see a substantial refinance boom.
According to the MBA, purchase activity is up 10%year-over-year.