Posted by OR on 9/28/11 12:05pm
Msg #399065

Rate Alert from rate lock...mortgage applications

The MBA weekly mortgage applications were strong last week; the composite index jumped 9.3% driven by re-financing as interest rates fell on the FOMC policy statement that the Fed would increase buying of MBSs and buy more treasuries at the long end of the curve while selling shorter maturities. The refinancing index jumped 11.2% in the September 23 week while the purchase index rose 2.1%. The rise in purchase applications was due to a 4.9% rise in conventional purchase applications that offset a 0.6% decline in applications for government loans which MBA tied to the pending decline in FHA loan limits. The purchase index has been on the rise in recent weeks and the gains hint at welcome strength in tomorrow's pending home sales report. The average rate for 30-year mortgages with conforming loans ($417,500 or less) fell four basis points in the week to 4.25% with the jumbo loans ($417,500 or more) also falling four basis points to 4.51%. FHA 30-year loans fell two basis points to 4.05%.

Reply by redd on 9/28/11 12:24pm
Msg #399071

I wonder why my phone is not ringing more - business has slowed significantly the last two weeks. Perhaps the apps are in and the signings will be more abundant in October, hopefully. The one borrower I have had this week said it took three months to get to the signing point.

Reply by Philip Johnson on 9/28/11 12:50pm
Msg #399077

Could it be?

1.House value is upside down.
2.Unemployed or underemployed
3.Those that could refi have already done it and the difference is too small to go again
4.New Fha rules that require a larger PMI that will eat the savings
5.Having to pay the appraiser at the door and taking a chance that if it doesn't appraise you'll have to eat that $500.00.

There are a myriad of reasons why things are the way they are. Granted there are parts of the country where folks are taking advantage and good for them, you may not be in one of those areas.

Reply by ME/NJ on 9/28/11 2:24pm
Msg #399089

FHA today cut down of max loan too

I do a ton of TD bank deals, and 50% of them have taken 2 months or longer to get to table. 80% of those deals are 15 year 3.3-3.5 interest rates. Current 15 yr deal is 3.1-3.0 as Phillip mentioned there are major issues preventing most people from getting these rates. Plus NJ banks can move forward with Foreclosures and pushing down home values even more.

September should of been a hot month, but it was just an average month for me far below the last 4 months. I am hoping for a strong Oct-Nov as December is always slow.