Mortgage Applications Plunge amid Higher Rates

refiancing 3I have been saying for a long time now that an interest rate hike would affect the number of mortgages issued and also would affect your monthly payment.  Looks like people have realized an interest rate hike might put their dream home out of reach.  Don’t let another rate increase happen without being under contract for a new home or refinancing the one you have!  It is important that your monthly payment is as low as possible.  Call me today for recommendations for a mortgage broker to talk to.

Reprinted with permission from RISMedia. ©2016. All rights reserved.

Mortgage applications plunged following last week’s jump in mortgage rates, down a steep 9.4 percent, according to data gathered in the Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. The Refinance Index in the survey, similarly, fell 16 percent, while the Purchase Index dipped 0.2 percent. The average loan size for purchase applications reached a survey high, $312,400.

The refinance share of mortgage activity, as well, decreased to 55.1 percent of total applications—the lowest level since June 2016—from 58.2 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7 percent of total applications, its highest level since June 2016.

The FHA share of total applications also decreased, to 10.4 percent from 11.7 percent the previous week, while the VA share of total applications decreased to 11.7 percent from 12.5 percent. The USDA share of total applications remained unchanged at 0.8 percent.

According to data from the survey, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increasedinterestrates-300x249 to its highest level since July 2015, 4.23 percent, from 4.16 percent, with points increasing to 0.41 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since July 2015, 4.18 percent, from 4.04 percent, with points decreasing to 0.29 from 0.37 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA, increased to its highest level since July 2015, 4.00 percent, from 3.90 percent, with points increasing to 0.44 from 0.36 (including the origination fee) for 80 percent LTV loans.

The average contract interest rate for 15-year fixed-rate mortgages, in addition, increased to its highest level since October 2014, 3.48 percent, from 3.35 percent, with points increasing to 0.33 from 0.32 (including the origination fee) for 80 percent LTV loans. The average contract interest rate for 5/1 ARMs decreased to 3.23 percent from 3.24 percent, with points increasing to 0.44 from 0.28 (including the origination fee) for 80 percent LTV loans.

Source: Mortgage Bankers Association (MBA) 

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a mortgage interest rate you can live with.

 

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