According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell last week. They were down for 30-year fixed-rate loans with both conforming and jumbo balances, as well as mortgages backed by the Federal Housing Administration and 15-year fixed-rate loans. Joel Kan, MBA’s associate vice president of economic and industry forecasting, said the decline was due to global economic conditions rather than conditions in the US. “Mortgage rates were lower last week, as concerns over global growth, particularly in Germany, outweighed more positive domestic news on first quarter GDP growth and business investment,” Kan said. But though interest rates fell, so did demand for mortgage applications. In fact, both refinance activity and demand for loans to buy homes fell from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.
Archive for May 2019
Pending Sales Bump May Be Sign Of Things To Come
New numbers from the National Association of Realtors show signed contracts to buy homes increased 3.8 percent in March. The improvement follows a decline the month before and could be a sign that the market is turning a corner. Lawrence Yun, NAR’s chief economist, says results have been fluid over the past few months but he expects sales activity will begin to climb. “We are seeing a positive sentiment from consumers about home buying, as mortgage applications have been steadily increasing and mortgage rates are extremely favorable,” Yun said. He also noted that pent-up demand, along with rising inventory, should lead to more home sales. “There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years,” he said. Also in the report, pending home sales – which refer to signed contracts, not closings – were up in the Midwest, South, and West. Only the Northeast saw declining activity in March. More here.
