Mortgage loan applications slip after moving up week earlier
June 21, 2013
While the housing market showed notable improvement in recent weeks, there was an issue with mortgage applications, which showed a slight decline. However, the residential sector still remains strong entering summer.
Overall home loan applications fell 3.3 percent during the week ending June 14, according to the Market Composite Index from the Mortgage Bankers Association's Weekly Applications Survey. This figure was 4 percent lower than the previous week when considering unadjusted statistics.
There was a similar decrease in the Purchase Index, which fell 3 percent from a week earlier when adjusted, while the unadjusted level dropped 4 percent. However, this was still more than 10 percent improved from a year earlier.
Another decline occurred in the Refinance Index, as the report noted that it fell 3 percent from the previous level. However, this was not enough to affect the refinance share of mortgage activity. That was 69 percent of all applications, which was the same as the previous measurement. For adjustable-rate mortgages, the figure remained at 7 percent.
The hiccup in mortgage applications during mid-June may not have that much of an effect on brokers and lenders, as conditions are still quite positive. Linear Title and Closing may be available to help certain industry members who are looking to close faster, especially with the positive situation in the residential housing market. Getting closing solutions can be easy when speaking to a representative.
Mortgage rates continue upward momentum
Even with mortgage applications temporarily dipping, there was much positivity for the mortgage market related to interest rate averages.
There was a rise in the 15-year fixed-rate mortgage average during the week ending June 13, as it jumped to 3.1 percent from the previous figure of 3.03 percent, according to a report from Freddie Mac. This was also higher than a year earlier, when the figure was 2.98 percent.
"Fixed mortgage rates crept up further this week following a solid employment report for May," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy added 175,000 new jobs and the number of discouraged workers fell by 780,000 to the fewest since September 2009."
Further improvement occurred in the 30-year FRM, as the figure averaged 3.98 percent during that week, the government-sponsored enterprise's Primary Mortgage Market Survey said. This was higher than the previous level of 3.91 percent.
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