Mortgage Broker's Association Nuggets
MBA nuggets (courtesy of MND.com)9/2/10
For the fifth consecutive week, mortgage applications rose in the U.S. and record-low costs carried refinancing yet again.
The MBA index rose 2.7 percent last week and refinance apps continue to climb this time at 2.8 percent, the highest level since May 2009. Purchases gained 1.8 percent.
Refinance apps continue to rise as Americans' desire to reduce monthly mortgage payments increases.
"Lower long-term interest rates have led to a new surge in mortgage refinancing," Paul Ashworth, senior U.S. economist at Capital Economics Ltd said.
The average rate on a 30-year fixed mortgage dropped to 4.43 percent from 4.55 percent the week prior.
At the current rate, monthly payments for each $100,000 of a loan would be about $503, $42 less than one year ago when the interest rates were at 5.14 percent.
The average rate on a 15-year fixed loan fell to 3.88 percent from 3.91 percent, even as the rate on a one-year adjustable climbed to 6.95 percent from 6.84 percent.
A report yesterday showed the S&P/Case-Shiller index of property values in 20 U.S. cities rose more than forecast in June from a year earlier, reflecting the influence of the tax incentive. Even so, the pullback in demand since its expiration may weigh on prices in coming months.
The Obama administration plans to offer $1 billion in zero- interest loans to help homeowners who've lost income avoid foreclosure as part of $3 billion in additional aid targeting economically distressed areas.
Certainly as we head into the final quarter of the fiscal year, the refinance apps are steadily gaining momentum. As foreclosures and unemployement also continue to rise, the real question is how long will it take before we recover economically.
Mortgage Broker's Association Nuggets
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