ARAMCO Report - The Mother of ALL Mortgage Blogs!

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 applications drop despite falling rates

Posted by Mehran Aram on Thu, May 30, 2019 @ 05:05 AM

Total mortgage application volume fell by 3.3 percent last week, indicating that lower mortgage rates haven’t been enough to spur homebuying. According to the Mortgage Bankers Association’s seasonally adjusted index, mortgage applications to purchase a home declined by one percent – the third consecutive weekly drop.

Mortgage activity was 15 percent higher a year ago, despite mortgage rates averaging nearly a full percentage point above their current levels. Higher home prices and limited inventory have kept many potential home prices on the sidelines in 2019 but as mortgage rates continue to fall, experts are optimistic there will be an uptick as we enter the summer home buying season.

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: home prices, Mortgage Bankers Association, Mortgage application, Mortgage rates, Limited Inventory

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

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

Buyers responding favorably to stable and lower mortgage rates

Posted by Mehran Aram on Sat, Mar 2, 2019 @ 06:03 AM

Mortgage applications appear to be on the rebound after several weeks of volatility. According to data released this week by the Mortgage Bankers Association, the Market Composite Index increased 5.3 percent on a seasonally adjusted basis during the week ended February 22.

This is the second week in a row where the index has increased following an extended period of declines and slight upticks that coincided with elevated mortgage rates. However, with a drop in rates earlier this year which currently remain stable, mortgage activity seems to be on the rise.

“Mortgage rates were little changed last week,” said Mike Fratantoni, Senior Vice President and Chief Economist for the MBA. “Homebuyers are responding favorably to this more stable rate environment.”

Both the Purchase and Refinance Indices increased last week, 6 and 5 percent respectively.

Meanwhile, mortgage rates have dropped approximately .625 percent than they were last November, creating a positive outlook on the future of the housing market. 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 Bankers Association, Mortgage rates, low rates, home buyers

Purchases down, refinances up

Posted by The Aramco Group on Mon, Jul 20, 2015 @ 14:07 PM

Home mortgage applications fell last week as purchases dropped according to the Mortgage Bankers Association. The industry tracker said Wednesday that its seasonally adjusted index, which takes into account both home purchases and refinancing, fell 1.9 percent.

During the same week, however, the volume of refinances climbed 3.7 percent, accounting for over half of total applications. Compared to last year, the number of Americans who are locking in to lower rates is up 5 percent, having ended last week at 50.8 percent of total mortgage activity – up from 48 percent the previous week.

With a short-term interest rate hike looming in the coming months, borrowers are turning to fixed rate loans, which offer stability and are at relative lows. The current conforming no point 30-year fixed rates average 4.125 percent and 15-year fixed rates average 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 question may be featured in an upcoming article.

Topics: Mortgage Bankers Association, Refinancing, home purchases

ARAMCO Report - Tuesday May 12, 2015

Posted by The Aramco Group on Tue, May 12, 2015 @ 12:05 PM

Mortgages keep getting easier to get 

Mortgage credit has become more available since 2012 according to the Mortgage Bankers Association (MBA). The MBA’s Mortgage Credit Availability index went up 0.5 percent in April 2015 to 122.0 points.

The Mortgage Availability Index is benchmarked to how available mortgages were in March 2012, so scores above 100 mean that mortgages are more available than they were at that time, and a positive change of score in April 2015 means that mortgages are more available than in the preceding month.  

The biggest expansion in mortgage availability was due to the expansion of government insured mortgage programs — especially the FHA’s 203K program. The FHA 203K lets qualified borrowers add the cost of any voluntary or necessary renovations to a home to their mortgage balance at the time of purchase with only one mortgage and one loan closing. A first-time homebuyer could use the program to purchase an existing home that may have been outside their reach before.

Potential homebuyers will find conforming no point 30-year fixed mortgage rates average 3.875 percent. Meanwhile, 15-year rates are closer to 3.125 percent. Contact ARAMCO if you have any questions about the FHA 203K program.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: 30 year fixed rates, mortgage, MBA, 203K, Loan, FHA, Mortgage Bankers Association, Mortgage Credit Availability Index

ARAMCO Report - Wednesday April 8, 2015

Posted by The Aramco Group on Wed, Apr 8, 2015 @ 15:04 PM

Meeting minutes from the Federal Reserve, released today, revealed that “several” of the Bank’s members thought they could raise interest rates in June. However, these opinions might be slightly out of date: minutes are officially released three weeks after a meeting, and a weak jobs report released one week ago is largely anticipated to have changed minds. Look for a change in rates closer to September. Meanwhile, interest rates took a slight dip during the last two weeks, and mortgage applications went up because of it. Mortgage application activity for home purchase is one of the strongest predictors of future home sales, and the gauge for these loan requests was at its highest week-over-week levels since July 2013. According to the Mortgage Bankers Association applications for such loans greatly outperformed refinance applications: the former rose 6.8 percent during the week that ended April 3rd. Current conforming no point 30 year fixed mortgage rates average 3.75 percent while 15-year rates average 3.0 percent.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Interest Rates, Fed, 30 year fixed rates, Federal Reserve, Mortgage Market, Mortgage applications, Mortgage Bankers Association

ARAMCO Report - Thursday March 5, 2015

Posted by The Aramco Group on Tue, Mar 10, 2015 @ 08:03 AM

Mortgage rates were unchanged on Thursday ahead of Friday’s closely watched employment report. A stronger report will renew fears of Fed rate hikes coming sooner, while a weaker report will give the Fed more time to be patient. Conforming no point 30 year fixed rates average 3 7/8ths with 15 year rates closer to 3 1/8th. Meanwhile according to the Mortgage Bankers Association, the Mortgage Credit Availability index rose in February, indicating a loosening of credit. And now for something completely different… Did you know that the first item bought by scanning its UPC code was a ten pack of Wrigley’s Fruit gum? It was purchase at an Ohio supermarket and it’s now on display at the Smithsonian.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: Wrigley's, 30 year fixed rates, Mortgage Bankers Association, Mortgage rates, Mortgage Credit Availability Index

ARAMCO Report - Thursday February 12, 2015

Posted by The Aramco Group on Tue, Feb 24, 2015 @ 11:02 AM

According to the January Mortgage Bankers Association’s Builder Application survey, mortgage applications for new home purchases jumped by 29% compared to the previous month. Lower mortgage rates certainly provided a great incentive. Meanwhile mortgage backed securities rallied on Thursday thanks to a larger than expected drop in January, retail sales, and a sharp rise in weekly jobless claims. Conforming no point 30 year fixed mortgage rates still average 3 3/4s with 15 year rates closer to 3 1/8th. And now for something completely different… Did you know that Neil Armstrong carried a piece of muslin fabric and a piece of wood with him to the moon? They came from the left propeller of the Wright brother’s airplane, called the Wright flyer.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.

Ask Mehran Aram

Topics: purchasing, Wright Brothers, Neil Armstrong, 30 year fixed rates, new homes, Mortgage Bankers Association