Mortgage Daily Logo

Purchases Out Front of Drop in Mortgage Apps

Mortgage News

Despite the lowest long-term fixed rates in over a year, new applications for home loans moved down — with purchase financing activity leading the drop.

A seasonally adjusted 2 percent decrease from one week earlier was recorded for the Market Composite Index for the week that ended on June 10.

The index, which is a
measure of mortgage loan application volume, actually climbed 21 percent, however, from the week that included Memorial Day without any seasonal adjustments.

The Mortgage Bankers Association included the index as part of its Weekly Mortgage Applications Survey, which it says covers over 75 percent of all U.S. retail residential mortgage applications.

Applications for refinances slipped a percent on a seasonally adjusted basis from the week ended June 3, while refinance share
widened to 55.3 percent from 53.8 percent a week earlier and 48.5 percent a year earlier.

Purchase financing applications
retreated 5 percent for the week. But without any seasonal adjustments, purchase activity climbed 17 percent and was 16 percent higher on a year-over-year basis.

Applications for mortgages insured by the Federal Housing Administration represented 11.8 percent of all applications, thinning from 13.0 percent in the prior report and 14.2 percent in the year-earlier report.

The trade group reported that applications for loans guaranteed by the Department of Veterans Affairs made up 11.1 percent of overall volume, a more narrow share than 11.5 percent the previous week and the year-previous week.

Applications for adjustable-rate mortgages accounted for 5.3 percent of the latest total. ARM share widened from 5.0 percent the previous week
but was was thinner than 6.5 percent the same week the previous year.

MBA’s data indicate that interest rates on jumbo mortgages were 4 basis points lower than conforming rates. The jumbo-conforming spread widened from just a negative 2 BPS a week earlier and was unchanged from a year earlier.

MBA said that 30-year conforming fixed rates were at the lowest level since January 2015, while jumbo rates were the lowest they’ve been since last month.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam