Bird’s eye view of the entire nation:
Demand for mortgages rose last week to its highest level in eight weeks, according to the Mortgage Bankers Association (MBA). Total mortgage applications rose 8.5% from the week prior, and a large chunk of last week’s activity was homeowners taking advantage of refinancing in light of job instability, a climate of rising mortgage delinquencies and bankruptcy filings, loan modification programs under scrutiny, along with record low rates, new home sales rising, pending home sales rising and home prices recovering… it’s a unique environment for sure.
All this together means people are uncertain and fearful and are preparing for that uncertain future by refinancing while others see an administration making noise in advocacy for homeownership and is confident with moving forward.
Here’s how it breaks down:
- Total mortgage loan application volume: up 8.5%
- Refinance index: up 11.1%
- Refinances accounted for 74.4% of total apps
- Purchase applications: up 41.7%
- Purchase apps down 18.8% from same week in 2008
- Government purchase applications: up 10%
- Conventional purchase applications: down 0.2%
If you’re a real numbers nerd (which I totally am), here are bonus stats for last week:
- The portion of apps that were for ARMs: down 4.7%
- Average intereste rate for one-year ARMs: down to 6.55%
- Average interest rate for 30-year fixed: up to 4.88%
- Average interest rate for 15-year fixed: up to 4.33%
What’s it like in your market? What movement in the market are you seeing be it up OR down?
appraisal management company
December 10, 2009 at 7:31 am
So you’ve decided to either purchase a house or perhaps you are preparing to refinance your home so that you can pay off some credit cards or just to take advantage of the amazing rates that are available out there in the wake of the credit crisis that hit just a couple of years ago. There are many things that you need to research on before you decide to pull the trigger and put your name on the dotted line.