Global| Apr 19 2017U.S. Mortgage Loan Applications Fall
by:Sandy Batten
|in:Economy in Brief
Summary
The Mortgage Bankers Association reported that its total Mortgage Applications Volume Index declined 1.8% last week (-24.9% y/y) in the week of April 14, more than reversing the 1.5% w/w rise in the preceding week. Refinancing [...]
The Mortgage Bankers Association reported that its total Mortgage Applications Volume Index declined 1.8% last week (-24.9% y/y) in the week of April 14, more than reversing the 1.5% w/w rise in the preceding week. Refinancing applications were relatively steady, edging up just 0.2% w/w but continued their sharp annual decline--down 41.5% y/y. Purchase applications fell 3.4% w/w (-1.0% y/y) after posting three consecutive weekly increases.
The effective interest rate on a 15-year mortgage edged up to 3.60% from 3.59% the previous week while the effective rate on a 30-year fixed-rate loan continued to ease, to 4.32%. The rate on a Jumbo 30-year loan fell 11 basis points to 4.21%, its lowest level since November 2016. For adjustable 5-year mortgages, the effective interest rate slipped to 3.36% from 3.39% the previous week.
The average mortgage loan size edged down from the previous week to $288,700 (+3.8% y/y). For purchases, loan size slipped $6,000 to $312,700 (+4.0% y/y); for refinancings, it rose nearly $6,000 to $256,000 (-1.5% y/y).
Recent diversion of trends in the breakdown of applications into adjustable and fixed interest rates continued. Applications for adjustable rate loans increased 25.0% y/y, while applications for fixed rate loans declined 27.5% y/y.
The survey covers over 75% of all U.S. retail residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The base period and value for all indexes is March 16, 1990=100. The figures for weekly mortgage applications and interest rates are available in Haver's SURVEYW database.
| MBA Mortgage Applications (%, SA) | 04/14/17 | 04/07/17 | 03/31/17 | Y/Y | 2016 | 2015 | 2014 |
|---|---|---|---|---|---|---|---|
| Total Market Index | -1.8 | 1.5 | -1.6 | -24.9 | 15.6 | 17.9 | -41.4 |
| Purchase | -3.4 | 2.9 | 0.7 | -1.0 | 13.3 | 15.5 | -12.9 |
| Refinancing | 0.2 | 0.0 | -4.2 | -41.5 | 17.3 | 19.7 | -52.8 |
| 15-Year Mortgage Effective Interest Rate (%) | 3.60 | 3.59 | 3.66 | 3.18 (April '16) | 3.22 | 3.37 | 3.54 |
Sandy Batten
AuthorMore in Author Profile »Sandy Batten has more than 30 years of experience analyzing industrial economies and financial markets and a wide range of experience across the financial services sector, government, and academia. Before joining Haver Analytics, Sandy was a Vice President and Senior Economist at Citibank; Senior Credit Market Analyst at CDC Investment Management, Managing Director at Bear Stearns, and Executive Director at JPMorgan. In 2008, Sandy was named the most accurate US forecaster by the National Association for Business Economics. He is a member of the New York Forecasters Club, NABE, and the American Economic Association. Prior to his time in the financial services sector, Sandy was a Research Officer at the Federal Reserve Bank of St. Louis, Senior Staff Economist on the President’s Council of Economic Advisors, Deputy Assistant Secretary for Economic Policy at the US Treasury, and Economist at the International Monetary Fund. Sandy has taught economics at St. Louis University, Denison University, and Muskingun College. He has published numerous peer-reviewed articles in a wide range of academic publications. He has a B.A. in economics from the University of Richmond and a M.A. and Ph.D. in economics from The Ohio State University.
