According to the Mortgage Bankers Association mortgage application, volume decreased 3.5% last week from the previous week. Total volume was fourteen percent higher compared with the same week one year ago.
Home loan refinance applications brought the total down, to 8% for the week but still rising 26% higher from a year ago, when interest rates were higher. Home purchase mortgage applications increased 1% last week and were 7% higher than a year ago. Home Purchase applications reached their highest level since April 2010.
The previous two weeks of rising rates are effecting homeowners expecting to refinance, but home-buying remains strong.
According to the Mortgage Bankers Association’s seasonally adjusted index volume was 14% higher than a year ago which total mortgage application volume decreased 3.5% last week from the previous week.
Home loan refinance applications brought the total down falling, 8% for the week but still 26% higher from last year although interest rates were higher.
Conforming 30-year fixed-rate mortgages with a 20% down payment and loan balances of $484,350 or less increased from 4.40%, to 4.44% with points decreasing from 0.47 to 0.42 including the origination fee making the rate 22 basis points, or nearly a quarter of a percentage point lower than a year ago.
Conforming 15-year fixed-rate mortgages with 80 percent LTV loans moved higher to 3.84% from 3.83%, with higher points from 0.42 to 0.45 making the effective rate increase from last week.
Joel Kan, MBA’s associate vice president of economic and industry forecasting said: “The spring buying season continues to be robust.” “With mortgage rates up for the second week in a row, it’s no surprise that refinancings slid 8%, and average loan sizes dropped back closer to normal levels,”
The mortgage refinance activity fell to 41.5% of total applications from 44.1% the previous week. Adjustable-rate mortgage share of activity fell to 6.6% of total applications.
New economic survey data expected Wednesday, could have a big impact on rates. Interest rates are rising due to concerns about overseas economies as Mortgage rates continued to move higher this week, hitting their highest level in nearly a month.
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