Posted by 101livescan on 3/8/13 3:17pm
Msg #460126

Good News about Loan Originations on the Increase

Double-digit rise in mortgage applications on decreased rates


Market Data

Thursday, March 07, 2013

Mortgage applications increased 14.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 1.
The Refinance Index increased 15 percent from the previous week and was at its highest level since mid-January. The seasonally adjusted Purchase Index also increased 15 percent from one week earlier and was at its highest level since the week ending Feb. 1. The unadjusted Purchase Index increased 18 percent compared with the previous week and was 17 percent higher than the same week one year ago.

The refinance share of mortgage activity was essentially unchanged from the previous week at 77 percent of total applications. The adjustable-rate mortgage (ARM) share of activity was unchanged at 4 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.70 percent from 3.77 percent, with points decreasing to 0.39 from 0.48 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The contract rate was at its lowest level since the week ending Jan. 25. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.80 percent from 3.93 percent, with points remaining constant at 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.47 percent from 3.54 percent, with points decreasing to 0.33 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.96 percent from 3.03 percent, the lowest contract rate since the week ending Jan. 25, 2013, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.55 percent from 2.65 percent, with points increasing to 0.37 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Reply by CJ on 3/8/13 3:30pm
Msg #460129

It's good to know that we will be staying busy. Thanks! :) n/m

Reply by JanetK_CA on 3/9/13 12:18am
Msg #460187

Re: It's good to know that we will be staying busy. Thanks! :)

Keep in mind, those are just week over week numbers. Don't want anyone to assume that relates to any long term projections - but should mean it will be busy over the next month or two, leading into the usually busy summer months. Let's hope it keeps up!

Reply by 101livescan on 3/9/13 9:01am
Msg #460208

Re: It's good to know that we will be staying busy. Thanks! :)

I signed a Wells Fargo refi for a top WF Financial Wealth Advisor yesterday and I asked him about the housing market and interest rates. He said he thought interest rates will stay low until we can get the jobs numbers up. The bond market went up yesterday on the news about jobs numbers, but they are not real numbers. Fewer people on unemployment because their benefits ran out..doesn't mean they have jobs, they are just not getting benies so they are no longer counted.

We need jobs! Until we have jobs, we have no buyers for the shadow inventory of homes the huge investors are sucking up, like Blackstone, Wedgewood, NationStar Mortgage, etc.

The values are inflating again, inventory is low. But we also don't have qualified buyers for the shadow inventory.

We will have more foreclosures in the coming years. No one ever tells us the real story...end of story.