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Homeowners respond to lower mortgage rates by refinancing

Posted by Mehran Aram on Fri, Oct 4, 2019 @ 05:10 AM

A rush of homeowners looking to refinance their home in response to another drop in mortgage rates helped push the volume of mortgage applications higher last week. The Mortgage Bankers Association reported in its Market Composite Index for the week ended September 27 that total volume jumped 8.1 percent over the week. This is a turnaround from the 10.1 percent decline seen the prior period.

The increase was driven primarily by a 14 percent spike in the Refinance Index which is currently 133 percent over where it was last year when rates were higher. The refinance share of mortgage activity increased to 58.0 percent of total applications, up from 54.9 percent the previous week.

Those looking to refinance their home will find conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Mortgage applications, Mortgage Bankers Association, Mortgage rates

Mortgage application volume on the slide

Posted by Mehran Aram on Sun, Sep 8, 2019 @ 08:09 AM

For the third consecutive week, the volume of mortgage applications has declined. According to The Mortgage Bankers Association’s weekly Market Composite Index for the week ended August 30, total mortgage applications in the U.S. fell 3.1 percent on a seasonally adjusted basis from the week prior.

Applications to refinance an existing mortgage declined seven percent, although lower rates kept that figure elevated above 2018’s numbers. Despite last week’s decline, the volume of refinances remain 152 percent higher than they were in August 2018 when mortgage rates were nearly a full percentage point above today’s levels.

Currently, mortgage rates are at their lowest point since November 2016 with conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: mortgages, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi

Low mortgage rates saving homeowners millions

Posted by Mehran Aram on Wed, Jul 3, 2019 @ 16:07 PM

With mortgage rates near their lowest point in years, millions of homeowners could benefit from refinancing their current mortgage. According to real estate analytics firm Black Knight, 8.2 million borrowers could lower their monthly mortgage payments by at least 75 basis points. That’s about $266 per month in savings.

Since mortgage rates began their steady decline last quarter, the volume of refinances has increased significantly. Mortgage applications to refinance a home loan were up 92 percent last week on a year-over-year basis.

In addition to locking in lower rates, refinance also provide the opportunity for borrowers to tap into their home’s equity. With rising home values, Black Knight has reported that the average homeowner has $136,000 in tappable equity.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home purchase, homeowners, home equity, Mortgage applications, refinance, Mortgage rates, Mortgage Payments, Refi, Low Mortgage Rates

Mortgage applications jump following drop in rates

Posted by Mehran Aram on Mon, Jun 17, 2019 @ 08:06 AM

Applications for mortgages shot up last week as mortgage rates declined. The dip in borrowing cost made millions of homeowners eligible to refinance their existing mortgage and lock in a lower rate. Refinances were the main driver behind the 26.8 percent spike in mortgage loan application volume during the week ended June 7.

The Mortgage Bankers Association reports that although home purchases also increased, it was applications to refinance soaring 47 percent over the week that was behind the overall increase. Refinance applications accounted for 49.8 percent of total application volume – the highest level since January 2018.

This latest data shows that even the slightest drops in mortgage rates can motivate borrowers to act quickly on locking in the savings.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: purchase, Mortgage applications, refinance, Mortgage rates, low rates, Purchase Applications, Homeowner, Low Interest Rates, Refi, Refinance Applications

Pending home sales retreat for 16th consecutive month

Posted by Mehran Aram on Sat, Jun 1, 2019 @ 08:06 AM

Even with falling mortgage rates in recent weeks, pending home sales, which are a measure of signed contracts to purchase existing homes, dropped 1.5 percent in April, compared to March. On a year-over-year basis contract signings fell by two percent – the sixteenth consecutive month of annual declines.

The decline in pending home sales, according to data from the National Association of Realtors, is not indictive of the health of the overall housing market and points to other, more positive trends.

“Though the latest monthly figure shows a mild decline in contract signings, mortgage applications and consumer confidence have been steadily rising,” said NAR’s Chief Economist Lawrence Yun. “It’s inevitable for sales to turn higher in a few months.”

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Housing Market, National Association of Realtors, Mortgage applications, NAR, Mortgage rates, Pending Home Sales, Existing Homes, Signed Contracts

Mortgage activity spike as rates drop

Posted by Mehran Aram on Sat, Apr 6, 2019 @ 06:04 AM

Mortgage applications skyrocketed last week after mortgage rates declined by their biggest one-week drop in more than a decade. The surge in mortgage activity was seen particularly in refinances which jumped up 39 percent compared to the previous week.

The current share of refinances as a percentage of total mortgage activity is current at its highest rate since January 2016. 47.4 percent of total mortgage applications last week were for refinances – up from 40.4 percent a week earlier.

Average borrowing costs continue to fall broadly, resulting in savings for consumers. Today conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Mortgage applications, Refinancing, Mortgage rates, Mortgage Activity

New report shows spring home-buying season in full swing

Posted by Mehran Aram on Mon, Apr 1, 2019 @ 05:04 AM

The Mortgage Bankers Association’s weekly Market Composite Index showed that the first week of spring brought with it a large gain in mortgage activity. Driven largely by a surge in refinances due to dropping interest rates, mortgage application volume increased 8.9 percent last week on a seasonally adjusted basis. This is the third consecutive weekly increase and the largest in a non-holiday week since July 2015.

Refinances increased 12 percent and accounted for 40.4 percent of total mortage application volume. This is up from 39.2 percent the prior week. The Purchase Index rose by six percent.

Mortgage rates holding steady at their lowest point in a nearly a year will likely continue to drive up activity in the coming weeks and months. Conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home buying, Spring Homebuying Season, Mortgage applications, Mortgage Bankers Association, Refinancing, Mortgage rates, home buyers

What is residential mortgage fraud?

Posted by Mehran Aram on Mon, Mar 25, 2019 @ 06:03 AM

The FBI defines mortgage fraud as “some type of material misstatement, misrepresentation or omission in relation to a mortgage loan, which then relied upon by a lender.”

Common forms of mortgage fraud include lying about income or employment, buying an investment property but claiming it is your primary home, not disclosing debts or even getting someone to co-sign on the loan just because they have good credit.

CoreLogic estimates that 1 in 109 mortgage applications could be somewhat fraudulent and the risk of mortgage fraud had increased by more than 12 percent between 2017 and 2018.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: CoreLogic, Mortgage applications, Mortgage rates, Mortgage Fraud

Lower rates stimulate mortgage activity

Posted by Mehran Aram on Sat, Mar 16, 2019 @ 06:03 AM

Home owners and those looking to refinance their existing mortgage are taking advantage of decidedly lower mortgage rates as seen in last week’s increase in mortgage applications. According to the Mortgage Bankers Association’s seasonally adjusted index, total mortgage application volume rose 2.3 percent last week with a sizeable increase in applications to purchase a home.

“Purchase applications have now increased year over year for four weeks, which signals healthy demand entering the busy spring buying season,” said Joel Kan, associate vice president of economist and industry forecasting for the MBA.

The Purchase Index climbed four percent last week – this is 2 percent higher than it was during the same time last year.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: homeowners, mortgage, Mortgage applications, Mortgage Bankers Association, refinance, Mortgage rates, low rates

Economic uncertainty drags down mortgage application volume

Posted by Mehran Aram on Sat, Feb 16, 2019 @ 05:02 AM

The Mortgage Bankers Association reported this week that mortgage applications have dropped in volume again. This is the sixth decrease over the last eight weeks. The Market Composite Index, a measure of application volume declined by 3.7 percent on a seasonally adjusted basis during the week ended February 8. Declines in mortgage rates generally spur mortgage activity but trepidation about the overall economy seems to have countered that.

“Application activity fell last week – even with rates decreasing – as renewed uncertainty about the domestic and gobal economy likely held potential homebuyers off the market,” said Joel Kan, MBA’s Associate Vice President of Industry Surveys and Forecasts. “The 30-year fixed-rate mortgage dropped to its lowest level since last March, and was 52 basis points lower than its recent high last November.”

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.25 percent, 15-year rates are near 3.75 percent and the 5-year ARM is averaging 4.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Mortgage applications, Mortgage rates, economy, Economic Uncertainty