The scale of purchase and loan reaches a two-year high

Average home loan size reaches highest level since 2022, although home lenders Saw the second week Application volumes were little changed, according to the Mortgage Bankers Association.

The MBA Market Composite Index, which measures weekly applications based on a survey of industry group members, fell slightly in the seven days ended March 29, down a seasonally adjusted 0.6%. Activity fell for the third consecutive week, following a similar 0.7 week. This is down % compared to the previous survey. Compared with a year ago, the index fell 10.2%.

“Mortgage rates fell last week, but that did not spur overall mortgage application activity,” Joel Kan, MBA vice president and deputy chief economist, said in a release.

For loans with balances below the $766,550 compliance limit in most markets, the 30-year fixed rate average edged down 2 basis points to 6.91% from 6.93% the previous week. The number of points used to help lower the interest rate has also been reduced from 0.6 to 0.59 for an application with a loan-to-value ratio of 80%.

“Rising mortgage rates continue to put pressure on home purchases,” Mr. Kan added, adding that despite an increase in loan volumes in some government markets, there was little change in home purchase application levels. The seasonally adjusted purchase index fell 0.1% week-on-week, but fell 12.6% in 2019. Still, the average home purchase loan size reached its highest level since April 2022, at $453,000, suggesting that limited inventory is still managing to impact home prices even amid lackluster activity.

MBA lenders have seen an upward trend in purchase loan sizes since the end of January, Reflecting continued price increases Several real estate industry researchers have taken note of this over the past week.

per month Payment speeds hit all-time high According to recent data from Redfin, in early March, while the online real estate brokerage reported rising inventory levels, data from its platform also showed typical inventory levels. Buyers’ down payments also soar It rose 24% year over year to nearly $56,000 in February.

Chen Li, head of economic research at Redfin, said current interest rates are “adding fuel to the fire, resulting in that in many places only wealthy Americans can afford to buy homes.” Press release.

Meanwhile, the MBA refinancing index fell 1.6% from the previous survey. Volume was also down 5% compared to the same seven-day period in 2023. Refinancing also shrank as a share of overall activity from 30.8% to 30.3%.

The share of federally funded loan applications contracted from a week ago, despite an increase in FHA-backed purchases. FHA-insured loans overall accounted for 11.7% of activity, down from 12%. Applications submitted through the Department of Veterans Affairs, however, the USDA’s share of applications managed to increase from 12% to 12.1%, remaining at 0.5% each week.

In addition to the compliance rate, other fixed averages tracked by MBA also fell last week, with the 30-year jumbo note rate at 7.06%, compared with 7.14% seven days ago. The borrower used points worth 0.57, which is above 80% of the loan’s LTV ratio of 0.38.

Rates on 30-year FHA-backed contracts averaged 6.74%, down one basis point from 6.75% in the last survey, with the score falling to 0.9 from 0.97.

The 15-year contract average fell 11 basis points week-on-week, from 6.46% to 6.35%. The buy point dropped from 0.75 to 0.56.

The 5/1 ARM, which starts with a fixed rate that adjusts to market levels after 60 months, was the only rising average rate MBA reported last week. Interest rates rose 10 basis points to 6.37% from 6.27%. points rose from 0.64 to 0.68.

With the 30-year average hovering near the previous week’s level, the adjustable-rate mortgage share attracted the same 7% of volume as the previous survey.

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