Purchase Mortgage Applications at a Level Untouched Since 2009
Author bio section
I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
The Mortgage Bankers Association informs that aspiring homeowners are putting behind the Coronavirus scare and filing purchase mortgage applications at a level not seen over the previous decade. It comes as a bonus that the 30-year fixed loan rates are at their lowest since the MBA’s Weekly Mortgage Applications Survey began.
Purchase mortgage applications have risen for the 9th week straight. It is partly the result of soaring consumer confidence and partly due to the demand kept in leash since spring, believes Joel Kan, the Associate VP of Economic and Industry Forecasting, MBA.
Kan feels that the refinance volume is also on a rise because it is allowing homeowners to save on their monthly mortgage liabilities- and this is a considerable bonus in times of Covid-19- related economic uncertainty.
Refinance applications have more than doubled compared to the same time, last year. Compared to last week, the share of refinancing in the entire mortgage activity has shot up from 61.3% to 63.2%.
The Adjustable-rate mortgage activity has come down by nearly 10% over the last week. 30-year fixed-rate mortgages (equal or less than $510,400) have come down by 8 basis points and sits at 3.3%. A Similar mortgage with jumbo balances (equal or greater than $510,400) has fallen by 3 basis points to sit at 3.67%.
The average contract interest rate for the FHA-backed 30-year fixed-rate mortgages have come down by 5 basis points to sit at 3.33%. ‘15-year’ has fallen by 3 basis points and is at 2.8%. “5/1 ARMs” has shot up by 5 basis points and sits at 3.07%.
Related Posts
- 92Freddie Mac believes that the mortgage rates that have climbed by three basis points could come down near record lows shortly. Freddie Mac's chief economist, Sam Khater, stated in a press release that the "Mortgage rates set several record lows over the last few months and have remained low into…
- 91Fannie Mae has posted its best refinancing figures in the last 17 years and its Q2 earnings have put in shade its Q1 earnings, demonstrating that it is having a decent time despite the setback faced by the broader economy. ‘Fannie’ believes that its performance can be put down to…
- 89For the first time in four weeks, mortgage applications saw a hike, rising by 2.9% over the last week. The housing demand is atypically strong as we come to the end of summer, says the Mortgage Bankers Association. The MBA's associate vice president of economic and industry forecasting, Joel Kan,…
- 84One way to form an opinion about demand is to look at the number of listings that have seen a price hike. One reason for such increases is real estate flipping. Investors buy a property, do some work on it, and sell it at a better price. It is done…
- 80The novel Coronavirus has come in a year when a good percentage of millennials are turning 30. What this means is that this demographic is stepping into its prime home-buying years in a scary situation. True that 2020 may be a headache-inducing year but looking at the big picture, “millennials…
