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Apr-15-2009US MBA Mortgage Applications Index Fell 11 Percent Last Week(topic overview)
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'EuropeVentures' goes on to speak about how the current the mortgage rate on a 30-year fixed loan is 4.89; compare that to a year ago when it was nearly 6 percent. You can see why so many homeowners are looking to refinance their homes. Right now is a good time to tie in your mortgage with these new interest rates. As the economy improves you may not get such a good rate again in the next few years. [1] Good news is, you can save significant amounts on your mortgage payments. With mortgage refinance loans from usloanz.com, you can have your monthly payment slashed, because they will pay off your old loan and replace it with a home refinance loan carrying better terms and lower interest rates to suit your needs.[2] Many lenders are willing to negotiate the terms of mortgages, just ask. Making the conditions more favorable to you increases your likelihood to repay and reduces defaults on loan, allowing them to recover their investments. This is a long term solution for those who otherwise, might face foreclosure. Bad credit mortgage refinance is specifically tailored to persons with less than ideal credit ratings, who wish to pay off their current mortgage and take on a new one with usloanz.com. Better terms and interest rates await those who choose to take this step, as well as financial security and the path to better credit. As they get lower, payments are adjusted down, and as they go up, adjustments are made to suit.[2]
The record low rates over the past few weeks have seen a huge increase in refinancing activity with nearly 80 percent of new home loan applications coming from borrowers seeking lower monthly payments. 'Given these low rates, housing demand has strengthened. Conventional mortgage applications both for refinancing and for home purchases have increased over the past five consecutive weeks,' said Frank Nothaft, Freddie Mac vice president and chief economist.[3] NEW YORK (Reuters) - Mortgage applications to finance the purchase of homes and to refinance existing loans fell last week even as U.S. home loan rates treaded water just above record lows, the Mortgage Bankers Association said on Wednesday.[4] The volume of mortgage applications filed last week fell a seasonally adjusted 11% from the week before, even as mortgage rates dropped, the Mortgage Bankers Association reported Wednesday.[5] The Market Composite Index, which measures mortgage loan application volume, fell from 1,250.6 to 1,113.2 in the week ending April 10, the Mortgage Bankers Association said in a release Wednesday.[6] The Market Composite Index, a measure of mortgage loan application volume, was 1113.2, a decrease of 11.0 percent on a seasonally adjusted basis from 1250.6 one week earlier.[7] The total mortgage applications index fell 11 percent in the week ended April 10 to a seasonally adjusted 1,113.2.[4]
The Refinance Index decreased 10.9 percent to 6071.7 from 6813.5 the previous week and the seasonally adjusted Purchase Index decreased 11.3 percent to 264.1 from 297.7 one week earlier.[7] The four week moving average for the seasonally adjusted Market Index is up 5.3 percent. The four week moving average is up 0.6 percent for the seasonally adjusted Purchase Index, while this average is up 6.5 percent for the Refinance Index.[7]
The Conventional Purchase Index decreased 13.5 percent while the Government Purchase Index (largely FHA) decreased 7.7 percent. The MBA does not provide a holiday adjustment for the Easter/Passover weekend, which may have contributed to this week'''s decrease in application volume.[7]
WASHINGTON, April 15 (UPI) -- The volume of applications for U.S. mortgages decreased last week, falling by a seasonally adjusted 11 percent, an industry group said.[6]
Helped with the reduced rate in borrowing U.S. homeowners are looking to fix in good deals now for the future. The Mortgage Bankers Association market index increased 21 percent to reach its highest point for 3 months.[1] Mortgage applications were down about 11 percent from the prior week in the Mortgage Bankers Association survey for the week ended April 10.[8]
The MBA weekly survey, which covers about 50 percent of all U.S. retail residential mortgage applications, has been conducted since 1990.[8] U.S. homeowners seem to think so to with over 70 percent of mortgage applications filled out are for refinancing.[1]
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.70 percent from 4.73 percent, with points increasing to 1.23 from 1.03 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. [7] The average interest rate for 30-year, fixed-rate mortgages decreased from 4.73 percent to 4.7 percent with points rising from 1.03 to 1.23, the organization said.[6]
The average interest rate for one-year adjustable rate mortgages fell from 6.23 percent with an average 0.14 points to 6.21 percent with 0.15 points, the report said.[6]
After swiftly tumbling from interest rates as high as 6-1/2 percent in October on sweeping government actions to revive housing, home loan borrowing costs have stagnated over the past month.[4]
The 30-year, fixed-rate mortgage edged up from record-low territory last week,. The long-term loan averaged 4.87 percent, up from its historic low of 4.78 percent the week before. It was the fourth straight week that the benchmark rate stayed below 5 percent.[3] In the week ended April 10, the average rate for fixed-rate 30-year mortgages dipped to 4.70 percent from 4.73 percent the prior week. It hit an all-time low 4.61 percent two weeks ago, the trade group said.[4]
The 15-year, fixed-rate mortgage decreased to 4.46 percent from an average of 4.49 percent, while points increased to 1.04 percent from 0.93.[8] The average one-year, adjustable-rate mortgage decreased to 6.21 percent from 6.23 percent, with points up slightly, to 0.15 percent from 0.14. It accounted for only 1.5 percent of all applications.[8]
The refinance share of mortgage activity decreased to 77.8 percent of total applications from 77.9 percent the previous week.[7] The adjustable-rate mortgage (ARM) share of activity remained unchanged at 1.5 percent of total applications from the previous week.[7]
On an unadjusted basis, the Index decreased 10.9 percent compared with the previous week and increased 45.6 percent compared with the same week one year earlier.[7] The purchase index fell 11.3 percent to 264.1 and the refi index dropped 10.9 percent to 6,071.7.[4]
Analysts had expected the index to rise slightly by 0.1%, but wholesale prices plunged by 1.2% in March. Between a potentially stronger banking sector, falling consumer spending, and few signs of inflation, it'''s a conflicting picture for mortgage rates, which may be just the reason why they'''re holding still.[9] One more key economic index that impacts mortgage rates, the producer price index (PPI) was revealed April 14.''[9]
If banks do gather strength, however, alongside the announcement from Goldman Sachs (Stock Quote: GS ) that it earned a better-then-anticipated $1.66 billion for the first quarter, then look for rates to pop back up. If not, and there is no shortage of Wall Street analysts who think the global banking crisis is far from over, the mortgage rates should continue to flat-line, or fall even further. Another key indicator that should impact mortgage rates is the monthly retail sales number.[9] When you get mortgage rate refinance at usloanz.com, you get quality service that is second to none.[2] With the lowest rates available anywhere whether online or off line, you are guaranteed to be satisfied. It's quick and easy to get started and there is no obligation in the unlikelihood that what we present does not suit your needs. Refinance Mortgage with usloanz.com is such a prompt service, you can start paying a lower monthly payment with lower rates on your next mortgage payment.[2]
Fill in the handy mortgage refinance application form available at usloanz.com.[2] USLOANZ.com has many types of loans. This include mortgage loans, loan modification and refinance mortgage.[2]
Requests for new loans dropped in the Good Friday holiday week after five straight weekly increases. "The MBA does not provide a holiday adjustment for the Easter/Passover weekend, which may have contributed to this week's decrease in application volume," the trade group said in a statement.[4] Compared to a year ago, applications were up 45.6 percent, driven by refinancing, which still account for more than three-fourths of all new applications.[8]
With dim economic news the norm and a short week due to the Easter holiday, the mortgage market is taking a '''wait-and-see''' attitude on interest rates. As a host of economic indicators are released this week and the financial markets have had more time to mull over potentially too-good-to-be true earnings, that might change.[9] In a speech in Hamburg, Weber said if the interest rate falls below 1%, banks will have no incentive to lend to each other, paralyzing interbank lending.[10]
During the prior five-week run, average 30-year mortgage rates sank by as much as a half percentage point before starting to trend up again. [4] Right now, 30-year-mortgage rates are up a few basis points from last week, at 5.03% and 4.97%, respectively, but 15-year mortgages flipped the other way, at 4.75% versus 4.77% last week. While last week was relatively quiet for mortgage rates, depending on the long-ailing banking sector, this week could trigger a real splash in the mortgage market.[9]
Payments are the same over the life of the loan and will not reflect adjustments during periods of low or high rates. [2] As the critical spring home selling season heats up, the response by home shoppers to current loan rates will be keenly monitored.[4]
The RICS reported that the average number of completed sales per surveyor in the UK for the preceding three month period increased in March to 9.7 from the record low February reading of 9.6, the first increase since October 2007. [10] The U.S. Commerce Department recently announced that retail sales fell by 1.1% in March, way below the.03% increase analysts had expected.[9] The Statistical Office of the Republic of Slovenia announced that the retail sales, without value added tax, declined a working day adjusted 15.6% year-over-year in February, in contrast to a 0.2% increase in the previous month.[10] Statistics Finland said retail sales declined 5.8% in February from the previous year, reflecting a 1.8% fall in the daily consumer goods trade.[10]
The office also reported that the average monthly gross earnings in nominal terms increased 4.2% year-over-year in February, slower than a 6.8% increase in the previous month. [10] One-year ARMs averaged 4.83 percent last week, rising from 4.75 the previous week, but still at the lowest point since the fall of 2005 when it averaged 4.68.[3] The Refinance Index also declined, dropping 11.3 percent to 264.1, the MBA said.[6] Germany's Federal Statistical Office said in a report that the wholesale price index or WPI dropped 8% year-over-year in March, after falling 5.7% in February.[10]
The 30-year, fixed-rate mortgage, based on an 80 percent loan-to-value ratio, averaged 4.7 percent, down from 4.73 percent in the prior week. [8] There are options for every type of mortgage refinance need, bad credit mortgage refinance included.[2]
SOURCES
1. 'EuropeVentures': Surge In Mortgage Refinancing In US.
2. How A Mortgage Refinance Can Help You? | usloanz707's Blog
3. CastroValleyForum.com
4. Mortgage applications slide, rates tread water | Reuters
5. Article - WSJ.com
6. Mortgage activity declines in week - UPI.com
7. Mortgage Apps Dip
8. Mortgage applications down during holidays - South Florida Business Journal:
9. Mortgage Rates Hold Still, But Likely to Change | Get the best rates on mortgage, home equity loans, CD, money markets and checking accounts | BankingMyWay.com
10. RTTNews - Economic News, Economic Reports, Global Economic News,Global Economic Reports, Economic Market Analysis.
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