Tag Archive for Market Composite Index

Home Loan Demand Rises For 2nd Straight Week

April 3, 2014 Housing Market Comments Off on Home Loan Demand Rises For 2nd Straight Week

According to the Mortgage Bankers Association’s Weekly Applications Survey, demand for loans to buy homes rose for the second consecutive week. The seasonally adjusted Purchase Index – which is an indicator of future home sales – was up 1 percent from the week before, providing further evidence of a shift from a refinance dominated market to one with increasing purchase activity. The Market Composite Index, which measures total mortgage application volume, fell 1.2 percent, however, due to a 3 percent drop in the Refinance Index. The refinance share of total mortgage activity was down for the eighth straight week, slipping to 53 percent of all applications. Mortgage rates, on the other hand, were largely unchanged. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances held steady, while jumbo loans and loans backed by the FHA saw a slight increase from the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Demand For Loans To Buy Homes Increases

March 27, 2014 Housing Market Comments Off on Demand For Loans To Buy Homes Increases

The Mortgage Bankers Association’s Weekly Applications Survey measures both purchase and refinance demand based on the number of people applying for home loans. The Purchase Index, which tracks the number of requests for loans to buy homes, is a good indicator of future home sales. Last week, the Purchase Index rose 3 percent from the week before, due to a 4 percent spike in conventional purchase applications. Government loan applications were virtually unchanged. Despite the rising demand to buy homes, a drop in refinance activity brought the Market Composite Index – a measure of overall demand – down 3.5 percent from the previous week. The results are evidence of an anticipated shift this year from a market dominated by refinance demand toward one with increased purchase activity. Also, average mortgage rates were up last week across all loan categories, including 30 and 15 year fixed-rate mortgages, conforming and jumbo loans, and FHA-backed loans. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. More here.

Mortgage Demand Flat Despite Rate Dip

March 20, 2014 Housing Market Comments Off on Mortgage Demand Flat Despite Rate Dip

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates fell slightly last week across all loan categories, including 30 and 15-year fixed-rate loans, jumbo and conforming loans, and those backed by the Federal Housing Administration. Despite the drop, demand for loans to purchase homes was essentially flat, falling 1 percent from the week before. The Refinance Index also decreased 1 percent, contributing to a 1.2 percent drop in the Market Composite Index, which measures total mortgage loan application volume. Mortgage application demand has now fallen for two consecutive weeks following a 10 percent spike at the beginning of the month. The refinance share of total mortgage activity also fell, slipping to 56.5 percent from 57 percent the week before. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all U.S. retail residential mortgage applications. More here.

Mortgage Rates Rise, So Does Credit Availability

March 13, 2014 Housing Market Comments Off on Mortgage Rates Rise, So Does Credit Availability

According to the Mortgage Bankers Association’s Weekly Applications Survey, mortgage rates increased last week across all loan categories, including those with conforming and jumbo balances as well as those backed by the FHA. The increase resulted in a 2.1 percent dip in the Market Composite Index, which measures both purchase and refinance demand. The Purchase Index was down 1 percent, while the Refinance Index dropped 3 percent. The rise in rates follows the previous week’s decrease, which led to a nearly 10 percent spike in demand for mortgage loan applications. The MBA also released their monthly Mortgage Credit Availability Index this week. February’s results show a slight increase from the month before. It was the third consecutive monthly improvement and continues a two-year trend upward. After tightening following the financial crisis, mortgage-credit standards have been easing, making it possible for more would-be borrowers to obtain financing. More here and here.