U.S. Mortgage Applications Rebound
by:Tom Moeller
|in:Economy in Brief
Summary
- Increase follows two weeks of decline.
- Refinance applications surge; purchase applications rise moderately.
- Mortgage interest rates are mixed.
Mortgage applications rose a seasonally adjusted 5.4% (-27.4% y/y) last week following a 0.8% decline in the previous week, according to the Mortgage Bankers Association Weekly Mortgage Applications Survey. Applications for loans to refinance an existing mortgage surged 13.2% (-29.4% y/y) following a 5.4% decline in the preceding week. Applications for loans to purchase a house rose 2.3% (-26.5% y/y) following a 1.3% increase in the previous week.
The effective interest rate on a 30-year fixed-rate loan rose to 7.52% in the week ended September 15 after increasing to 7.48% in the previous week. It was the highest rate in three weeks. The effective 15-year rate eased to 6.89% from 6.97% in the previous week. The rate on a 30-year Jumbo loan rose to 7.55% from 7.45%. The rate on a 5-year adjustable-rate mortgage (ARM) fell to 6.83% from 7.02% in the prior week.
The share of loan applications for refinancing increased to 31.6% in the week ended September 15 from 29.1% in the previous week. The share of adjustable-rate mortgage applications declined to 7.2% after increasing to 7.5% in the previous week, though it remained above its recent low of 5.9% on July 21.
The average size of a mortgage loan fell to $365,600 in the week ended September 15 from $368,100 in the prior week. The average size of a loan for purchase rose to $416,800 from $412,900. It was the highest level in five weeks. while the average size of a loan for refinancing fell to $254,600 from $258,800 in the prior week.
The Mortgage Bankers Survey covers 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 SURVEYS database.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
More Economy in Brief
