Gov Refis Drive Jump in Mortgage Applications

Mortgage News

Mortgage Daily Staff

                                                 August 10, 2016

A surge in applications for mortgage refinances –especially government-backed refinances — drove an impressive increase in overall new applications for residential loans.

Based on the Market Composite Index for the week ended Aug. 5, new mortgage applications climbed over 7 percent on a seasonally adjusted basis from a week earlier.

Even without any seasonal adjustments, the index —
a measure of retail residential loan application volume — rose 7 percent compared to the report from the prior week.

The index is included in the Weekly Mortgage Applications Survey from the Mortgage Bankers Association. The survey reportedly covers more than three-quarters of all mortgage applications.

A 10 percent seasonally adjusted increase from the week ended July 29 was reported for refinance applications.

Government refinance business shot up 27 percent, while conventional refinances rose just 6 percent.

Overall refinance share, meanwhile, widened to 62.4 percent from 60.7 percent the prior week and 53.1 percent the same week in 2015.

MBA reported that applications for purchase financing moved up 3 percent from the last report.
Even without any seasonal adjustments, purchase activity was up 2 percent from a week earlier and increased 13 percent versus the week ended Aug. 7, 2015.

A tenth of all mortgage applications were for loans insured by the Federal Housing Administration, widening from a 9.4 percent share in the last report. FHA share was reduced, however, from 13.3 percent in the year-earlier report.

Department of Veterans Affairs applications made up another 13.0 percent of overall activity in the week ended Aug 5, 2016. VA share was fatter than 12.1 percent a week prior and
11.3 percent a year prior.

MBA’s data indicate that interest rates on jumbo mortgages were a basis point less than rates on conforming loans. The jumbo-conforming spread thinned from a negative 2 BPS the previous week
and a negative 5 BPS a year previous.

The report indicated that applications for adjustable-rate mortgages accounted for 4.7 percent of total volume, the same as in the previous report.
ARM share, however, has thinned from 6.8 percent the same week last year.

Mortgage Daily Staff

Related Posts

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...

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...

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...

Mortgage Servicing 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 BAC Home Loan...

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