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August 2017   Volume 43, Number 8      
 

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Mortgage Applications Down 12 Percent Since 2016

Even though mortgage application volume increased 2.8 percent in the second week of June, all thanks to refinances, the Mortgage Bankers Association’s seasonally adjusted weekly index was 12 percent lower compared to a year ago when rates were slightly lower.

As rates ticked lower for the second week in a row, refinance applications increased 9 percent over the previous week.. Refinance volume, however is nowhere near where it was just a year ago — 27 percent lower — when rates were even lower. Many consumers thought then was last the chance to take advantage of the lowest rates.

“From a borrower perspective, rates held steady at seven-month lows last week providing some borrowers an opportunity to refinance,” said Joel Kan, an MBA economist. “Over the last two weeks refinance applications have increased 13 percent and the average loan size increased to its largest since September 2016, reflecting the tendency for jumbo borrowers to be more sensitive to rates than those with smaller loan balances.”

Homebuyers are not seeing the same benefit from low rates, given weakening affordability and fast-rising home prices. Mortgage applications to purchase a home declined 3 percent for the week but are close to 8 percent higher than they were in 2016.

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In this issue:

The 10 Fastest Growing Cities in the U.S.

3 Million First-time Homebuyers Shut Out of Home Market in Past Decade

America’s Hottest Real Estate Markets: May 2017

Home Prices Are Increasing, But Mortgages Are Still Cheap

Fed Announces Third Rate Hike in 7 Months

Industrial Real Estate Development Reaches 10 Year High

Real Estate Companies Are Moving to the Cloud

Mortgage Applications Down 12 Percent Since 2016

Why More Millennials Are Finally Buying Real Estate

Why More Real Estate Firms Are Now Offering Mortgages



 


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