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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

Home buyers take housing-hunting break over 4th of July

Posted by Mehran Aram on Mon, Jul 15, 2019 @ 06:07 AM

The Mortgage Bankers Association reported last week that it’s Market Composite Index, a measure of application volume, declined by 2.4 percent during the week July 5. This includes an adjustment to account for the Independence Day holiday.

Refinances, which have remained elevated for several weeks as mortgage rates remain low, fell 7.0 percent on a weekly basis but remain 88 percent above last year’s levels when borrowing costs were higher.

A gradual decline in refinances is expected in the coming months as many homeowners have already locked in low rates while others may continue to hold-out in the hope that rates will decline further.

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: Mortgage rates, Home refinance,, home buyers, Refi, Refinance Applications

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