Ingrid B. Quinn

NMLS ID #211652 Arizona, Loan Consultant


Leave a comment

M.B.A. Shows Mortgage Applications Decreasing

983077351003885_mortgage-application

The Mortgage Bankers Association released a weekly survey as of Aug. 21st, 2013 that spoke about mortgage applications. We recently had been seeing the market increase at a rapid rate and it is surprising that applications would decrease so suddenly.
The MBA stated that their finding s shows, “The Market Composite Index, a measure of mortgage loan application volume, decreased 4.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week.”
Form the press release we can see that this drop is not due to the lack of people buying home, but rather people no longer refinancing. “The seasonally adjusted Purchase Index increased 1 percent from one week earlier,” where as “The Refinance Index has dropped 62.1 percent from the recent peak reached during the week of May 3, 2013.”
It seems that this recent shift away from refinancing is really affecting the real-estate market. The MBA state that this change has greatly to do with rate changes in the past month, “The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.68 percent from 4.56 percent, with points increasing to 0.42 from 0.39 (including the origination fee) for 80 percent loan- to-value ratio (LTV) loans. The effective rate increased from last week.”
This is speaking on a national level. The MBA covers 75% of retail residential mortgage applications in the U.S. . People should not be afraid to purchase or refinance right now. Rates being in the mid 4’s are truly not bad. In the time I have spent working in the mortgage industry I have seen rates more than twice that and people were still buying homes.
Buyers need to be aware of that is happening in the market and not hesitate to ask questions and seek out answers. For the full press release please visit http://www.mortgagebankers.org/NewsandMedia/PressCenter/85394.htm .
For any questions of suggestions please feel free to email me at Ingrid.Quinn@cobaltmortgage.com of visit me at http://www.CobaltMortgae.com/IngridQuinn or http://www.ScottsdaleMortageExpert.com