Mortgage applications in the United States plunge in early April


According to the Mortgage Bankers Association’s latest weekly mortgage application survey for the week ending April 2, 2021, U.S. mortgage applications are down 5.1% from the previous week.

The Composite Market Index, a measure of the volume of mortgage applications, fell 5.1 percent on a seasonally adjusted basis from the previous week. On an unadjusted basis, the index fell 5 percent from the previous week.

The refinancing index fell 5 percent from the previous week and was 20 percent lower than the same week a year ago. The seasonally adjusted buying index was down 5 percent from the previous week. The unadjusted buying index was down 4 percent from the previous week and was 51 percent higher than the same week a year ago.

Joel kan

“Mortgage rates resumed their upward trend last week, with a 30-year fixed rate at 3.36%. The return of rates to their highest levels since last June contributed to a slowdown in requests for purchases and refinancing. The labor market is generating significant demand for home purchases, but activity in recent weeks has been constrained by faster growth in home prices and extremely low inventories, ”said Joel Kan, associate vice president of economic and industrial forecasts of the MBA. “Refinancing requests declined for the fifth week in a row, but there was an increase in VA lending activity. Overall, the demand for refinancing has declined, with volume declining by more than 30% over the past 10 weeks. “

The refinancing share of the mortgage business fell to 60.3 percent of total applications, from 60.6 percent the week before. The share of variable rate mortgage (ARM) activity increased to 3.7% of total applications.

FHA’s share of total claims fell to 10.2% from 11.3% the week before. The VA share of total claims increased to 13.8% from 10.3% the previous week. USDA’s share of total claims rose to 0.5 percent from 0.4 percent the week before.

The average contractual interest rate for 30-year fixed rate mortgages with compliant loan balances ($ 548,250 or less) increased to 3.36% from 3.33%, with points dropping from 0, 39 at 0.43 (including origination fee) for 80% of the loan-to-loan to value ratio (LTV). The effective rate has increased from last week.

The average contractual interest rate for 30-year fixed rate mortgages with jumbo loan balances (above $ 548,250) increased from 3.34% to 3.41%, with points dropping from 0, 31 to 0.41 (including set-up fee) for 80% LTV loans. The effective rate has increased from last week.

The average contractual interest rate for 30-year FHA-guaranteed fixed rate mortgages increased from 3.29% to 3.36%, with points falling from 0.36 to 0.36 (including origination fees). ) for 80% LTV loans. The effective rate has increased from last week.

The average contractual interest rate for 15-year fixed rate mortgages fell from 2.71% to 2.74%, with points declining to 0.32 from 0.33 (including origination fees) for 80% LTV loans.

The effective rate has increased from last week. The average contractual interest rate for ARM 5/1 fell from 2.85% to 2.92%, with points dropping from 0.40 to 0.46 (including origination fees) for LTV loans to 80 %. The effective rate has increased from last week.


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