Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Economic News

Mortgage Applications Are Up This Week, Do You Know Why?

Bird’s eye view of the entire nation:

mortgage applicationsDemand 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?

Lani is the COO and News Director at The American Genius, has co-authored a book, co-founded BASHH, Austin Digital Jobs, Remote Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

13 Comments

13 Comments

  1. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Housing News

CFPB was created by the Obama administration in 2011 to protect consumers, and immediately sought out ways to "bubble-proof" America, starting with mortgage disclosure...

Housing News

Accounting for the Veteran's Day holiday, mortgage applications actually fell for the week, but there is a silver lining when it comes to purchase...

Housing News

As the government has been shut down, mortgage application fell and uncertainty continues.

Housing News

The volume of people applying for any type of mortgage continues to fall as interest rates increase and other market changes take place.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.