Weekly mortgage refinance applications rebound 14% on tiny rate dip

After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances. That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually.


After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances. That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually.
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Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: diana olick, in dianaolick
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Weekly mortgage refinance applications rebound 14% on tiny rate dip

After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances.

That pushed total mortgage application volume up 8% for the week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 58% higher than a year ago, when refinances were incredibly weak.

After rising sharply over the previous two weeks, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 3.99% from 4.02%, with points remaining at 0.38 (including the origination fee) for loans with a 20% down payment. The rate was 97 basis points lower than a year ago.

The rate reversal was enough to push refinance volume 14% higher for the week and 133% higher from one year ago. The gain may have been less about the tiny dip and more about borrowers seeing rates move higher in the previous weeks and worrying that they would miss out on the lowest rates. Lenders say they often see more refinance applications just as rates start to rise, because borrowers who had been waiting for rates to move even lower decide to get off the fence.

“Although refinance activity slowed in September compared to August, the months together were the strongest since October 2016. The slight changes in rates are still causing large swings in refinance volume, and we expect this sensitivity to persist,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Mortgage applications to purchase a home rose just 1% for the week but were 10% higher annually. The fall housing market is benefiting from lower rates but suffering from a lack of homes for sale, especially at entry-level prices.

While the number of purchase applications was 10% higher annually, the dollar volume of those applications was nearly 17% higher, suggesting that the action in the purchase market is at a higher price than a year ago. Sales of homes priced at the lower end of the market fell in August compared with last year, according to the National Association of Realtors, but sales of homes priced above $500,000 saw big gains. There is simply more for sale in the move-up market than at the entry level, and buyers there are less sensitive to small changes in mortgage rates.

Mortgage rates started this week even lower, but that could change with the release of the all-important monthly employment report on Friday as well as other economic data in the days before then.


Company: cnbc, Activity: cnbc, Date: 2019-10-02  Authors: diana olick, in dianaolick
Keywords: news, cnbc, companies, rate, refinance, dip, applications, weekly, mortgage, higher, volume, tiny, week, market, lower, rates, rebound


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Trump says Fed ‘boneheads’ should cut interest rates to zero ‘or less,’ US should refinance debt

President Donald Trump on Wednesday continued his verbal assault on the Federal Reserve, who he blames for slowing the economy, tweeting that the central bank should cut interest rates to zero or even set negative interest rates. “The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. This isn’t a mortgage, this is U.S. Treasury debt. I think it would be incredibly disruptive to financial markets, and interest rates would ultimate


President Donald Trump on Wednesday continued his verbal assault on the Federal Reserve, who he blames for slowing the economy, tweeting that the central bank should cut interest rates to zero or even set negative interest rates. “The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. This isn’t a mortgage, this is U.S. Treasury debt. I think it would be incredibly disruptive to financial markets, and interest rates would ultimate
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Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: jeff cox john melloy, jeff cox, john melloy
Keywords: news, cnbc, companies, fed, debt, zero, rates, interest, economy, trump, treasury, refinance, boneheads, united, cut, reserve


Trump says Fed 'boneheads' should cut interest rates to zero 'or less,' US should refinance debt

This is a developing story. Check back for updates.

President Donald Trump on Wednesday continued his verbal assault on the Federal Reserve, who he blames for slowing the economy, tweeting that the central bank should cut interest rates to zero or even set negative interest rates. The president also called Fed officials “boneheads” in the tweet.

“The Federal Reserve should get our interest rates down to ZERO, or less, and we should then start to refinance our debt. INTEREST COST COULD BE BROUGHT WAY DOWN, while at the same time substantially lengthening the term,” he said.

The president also made a new suggestion not seen in some of his past attacks on the Fed, saying that the country should refinance its debt load.

“It’s not viable and could be a significant problem for investors, financial markets and ultimately the economy,” said Mark Zandi, chief economist at Moody’s Analytics. “The debt is not prepayable. There’s a contractual relationship the Treasury has with investors. This isn’t a mortgage, this is U.S. Treasury debt. I think it would be incredibly disruptive to financial markets, and interest rates would ultimately rise, not fall.”

It’s unclear how such an idea would work. The Treasury Department likely would have to be involved, and there have been calls recently to issue longer-term debt, such as a 50- or 100-year Treasury.

“From a theoretical standpoint, obviously it would be wonderful for the United States government over a period of year if it were to lengthen the maturities on debt that would have rates below 1%,” said banking analyst Dick Bove at Odeon Capital Group. “It would certainly be beneficial to the United States government. Whether it would be beneficial to the United States economy is an open question.”

Cutting rates to zero or below would cheapen debt costs but also make the U.S. a less desirable spot for capital flow as the ability to generate yield would disappear.

Trump had made a suggestion during the 2016 presidential campaign that would have involved renegotiating the debt. That idea then was widely dismissed as a move the actually could drive Treasury yields higher, jeopardize the nation’s standing among its creditors and pose a threat to the U.S. dollar as the world’s reserve currency.

During a CNBC interview in May 2016, Trump said that if the economy turned south, he would try to get creditors to accept partial payment on U.S. debt.

“I would borrow, knowing that if the economy crashed, you could make a deal,” he said then.

His idea was that the U.S. would pay less than face value on the Treasury debt it issues to cover the burgeoning budget deficit. However, doing so would only increase the costs of issuing the debt as creditors would demand higher interest payments.

Trump has long bemoaned Fed policy, saying the central bank should get more in line with the near-zero rates employed by the nation’s global competitors. The Fed currently targets its benchmark overnight lending rate in a range between 2% and 2.25%, the highest of any G-7 nation.

In previous tweets, he has repeatedly ripped his own appointee, Fed Chairman Jerome Powell, as being out of step with the economic needs in the U.S.

“The USA should always be paying the the lowest rate. No Inflation! It is only the naïveté of Jay Powell and the Federal Reserve that doesn’t allow us to do what other countries are already doing. A once in a lifetime opportunity that we are missing because of “Boneheads,” Trump said in Wednesday’s tweets.


Company: cnbc, Activity: cnbc, Date: 2019-09-11  Authors: jeff cox john melloy, jeff cox, john melloy
Keywords: news, cnbc, companies, fed, debt, zero, rates, interest, economy, trump, treasury, refinance, boneheads, united, cut, reserve


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Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.


It didn’t take much to end the party in the refinance market. A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. Volume was 66% higher annually, as rates were still higher last year. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower.
Mini refinance boom goes bust, as mortgage rates turn higher Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
Keywords: news, cnbc, companies, rates, turn, mortgage, mini, boom, end, points, goes, market, bust, refinance, lower, rate, week, higher


Mini refinance boom goes bust, as mortgage rates turn higher

It didn’t take much to end the party in the refinance market.

A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly. That pushed total mortgage application volume down 6.2% last week, compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 66% higher annually, as rates were still higher last year.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 3.94% from 3.90%, with points increasing to 0.38 from 0.35 (including the origination fee) for loans with a 20% down payment. The rate was 84 basis points lower than a year ago and 14 basis points lower than four weeks earlier.

“U.S. Treasury yields were volatile over the course of the week, as the ongoing trade dispute between the U.S. and China continued to generate uncertainty among investors,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Rates increased for the first time since the week of July 12.”

Despite that, mortgage applications to refinance a home loan fell 8% for the week. They were still 167% higher than a year ago, proving how volatile the weekly moves are despite rates being lower. The refinance share of mortgage activity decreased to 62.4 percent of total applications from 62.7 percent the previous week

Mortgage applications to purchase a home, which are less sensitive to rate changes, fell 4% last week and were just 2% higher than a year ago.

“The drop in rates this summer have not yet led to a significant boost in activity. Uncertainty over the near-term economic outlook and low supply [of homes for sale] continue to be the predominant headwinds for prospective homebuyers,” Kan said.

Consumer confidence in the housing market is still high, according to a monthly Fannie Mae survey, but there is a shortage of homes for sale on the low end of the market, where demand is strongest. That is where home prices are still rising fastest and borrowers have less wiggle room in their wallets. At the higher end, where listings are more plentiful, potential buyers are more sensitive to the latest swings in the stock market and the overall concern over a potential recession.


Company: cnbc, Activity: cnbc, Date: 2019-08-28  Authors: diana olick
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Millennials drive mortgage refinance boom, and lenders are scrambling

Applications to refinance were up a stunning 116% this week compared with a year ago, according to the Mortgage Bankers Association. Quicken Loans, the nation’s largest mortgage lender, just saw the best quarter for mortgage originations in the company’s 34-year history. It originated more than $11 billion in mortgage volume in June alone, the highest for any month ever, according to a release. “Savvy millennials looking to lock in lower interest rates on their mortgages have helped drive a surg


Applications to refinance were up a stunning 116% this week compared with a year ago, according to the Mortgage Bankers Association. Quicken Loans, the nation’s largest mortgage lender, just saw the best quarter for mortgage originations in the company’s 34-year history. It originated more than $11 billion in mortgage volume in June alone, the highest for any month ever, according to a release. “Savvy millennials looking to lock in lower interest rates on their mortgages have helped drive a surg
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Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: diana olick
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Millennials drive mortgage refinance boom, and lenders are scrambling

Patrick T. Fallon | Bloomberg | Getty Images

Mortgage interest rates have been falling since May, especially sharply this month, so borrowers, especially millennials, are rushing to refinance. Applications to refinance were up a stunning 116% this week compared with a year ago, according to the Mortgage Bankers Association. That has lenders scrambling to keep up. Quicken Loans, the nation’s largest mortgage lender, just saw the best quarter for mortgage originations in the company’s 34-year history. It originated more than $11 billion in mortgage volume in June alone, the highest for any month ever, according to a release. That brought the total quarter volume to a record $32 billion. It is now looking to hire 1,300 more employees, the majority at its Detroit headquarters.

Part of that was a slight uptick in homebuying, but much of it was refinancing, as the average rate on the 30-year fixed slid well below 4%. Refinancing had dried up dramatically just a year ago, as interest rates rose. Some lenders let go of workers, as business slowed. Millennials were especially reactive to the rate drop. In June 2018, just 8% of millennial mortgage applications were to refinance; the rest were to buy a home. This June that jumped to 14%, according to Ellie Mae. “Savvy millennials looking to lock in lower interest rates on their mortgages have helped drive a surge in refinance activity,” said Joe Tyrrell, chief operating officer of Ellie Mae. “While the Federal Reserve’s rate cut doesn’t necessarily mean that rates on mortgages will continue to drop, we’ll be keeping a close eye on its impact on both the refinance and overall mortgage market as we do anticipate that it will affect consumer behavior, including millennials who look to lower their payments.” At SunTrust Bank, customer volume has also surged pretty dramatically. That was unexpected, as most predictions last year were that mortgage rates would rise this year, not fall, so banks and lenders are now scrambling. “We are really looking at ways to preserve our client experience, which may mean just for consumers to be aware that it might take you a little bit longer to get through the process,” said Sherry Graziano, senior vice president and mortgage transformation officer at SunTrust. “And that might mean taking a little bit longer to get a hold of the mortgage professional to assist you. But it’s really important that you do get that advice from somebody who can really help you make a well informed decision, so that you can insure yourself financial confidence.” Graziano said clients are looking to refinance now for multiple reasons. Some may want to simply lower their monthly payments, others are looking for different mortgage products, and still others want to consolidate credit card or student loan debt into one loan at a lower rate.


Company: cnbc, Activity: cnbc, Date: 2019-08-09  Authors: diana olick
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Mortgage rates sink to 3-year low, but one-third of borrowers are making this big mistake

That pushed the yield on the 10-year Treasury, which mortgage rates loosely follow, down sharply. The average rate on the popular 30-year fixed mortgage hit 3.70% on Friday, the lowest since November 2016, according to Mortgage News Daily. The size of that population, however, is still very sensitive to even the slightest rate moves, since so many borrowers have already refinanced to very low rates. Rates are now incredibly favorable for both refinance and home purchase, consumers still need to


That pushed the yield on the 10-year Treasury, which mortgage rates loosely follow, down sharply. The average rate on the popular 30-year fixed mortgage hit 3.70% on Friday, the lowest since November 2016, according to Mortgage News Daily. The size of that population, however, is still very sensitive to even the slightest rate moves, since so many borrowers have already refinanced to very low rates. Rates are now incredibly favorable for both refinance and home purchase, consumers still need to
Mortgage rates sink to 3-year low, but one-third of borrowers are making this big mistake Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: diana olick
Keywords: news, cnbc, companies, borrowers, rate, rates, mistake, big, onethird, lower, 3year, low, mortgage, according, million, 30year, making, refinance, lender, sink


Mortgage rates sink to 3-year low, but one-third of borrowers are making this big mistake

Escalating tensions over a trade war with China sent investors rushing to the relative safety of the bond market late last week. That pushed the yield on the 10-year Treasury, which mortgage rates loosely follow, down sharply.

The average rate on the popular 30-year fixed mortgage hit 3.70% on Friday, the lowest since November 2016, according to Mortgage News Daily. That rate will likely dip even lower Monday, as bond yields continue to fall.

The drop last week meant that 8.2 million 30-year mortgage holders could likely qualify for a refinance and save at least 0.75% off of their current interest rate by doing so, according to a new tally by Black Knight, a mortgage software and analytics company.

The size of that population, however, is still very sensitive to even the slightest rate moves, since so many borrowers have already refinanced to very low rates. Just a one-eighth of a point move lower could add another 1.5 million borrowers to the eligible refinance pool, and the same move in the other direction would knock 1.3 million out.

“Lower rates have also increased the buying power for prospective homebuyers looking to purchase the average-priced home by the equivalent of 15%, meaning that they could effectively buy $45,000 ‘more house’ while still keeping their payments the same as they would have been last fall,” said Ben Graboske, president of Black Knight Data and Analytics.

“As affordability pressures have eased, it also appears to be putting the brakes on the home price deceleration we’ve been tracking since February 2018,” he added.

Rates are now incredibly favorable for both refinance and home purchase, consumers still need to shop around for the best rate. But a full one-third of them are not, according to a new survey from Fannie Mae. The vast majority of consumers will comparison shop for other products, but mortgages are apparently too daunting.

“Unfortunately, comparison shopping for a mortgage can be a much more complicated and time-consuming endeavor. Simply evaluating the ‘price’ of a mortgage involves looking at several interrelated components – including rates, fees, and points – and making an assumption about how long a borrower will stay in that mortgage,” noted Fannie Mae’s chief economist, Doug Duncan, in the report.

“While it’s easy to find “teaser” rates advertised online, a true mortgage quote is based on a handful of variables that are unique to each buyer and evaluated differently by each lender,” he continued.

Consumers instead tend to rely on advice from family and friends or simply go to the same lender they’ve used before.

“Non-shoppers also reported much less concern with competitive terms when selecting a lender, citing other non-financial priorities, such as customer service/responsiveness and having a preexisting account with a lending institution. Individual households may have good reason for accepting that tradeoff,” added Duncan.

Mortgage rates have been quite volatile lately, so borrowers who could benefit from a refinance will need to act quickly. Rates could move lower, but different lenders will be responding to the changing market conditions at different paces.

“Once the dust settles, however, we’re talking about a move to the “mid 3’s” for best-case 30-year fixed rates,” said Matthew Graham, chief operating officer of Mortgage News Daily. “Can rates go lower from here? Sure! Rates can always go lower.”

Of course if rates go into historically low territory, there will be pushback from both lenders and investors in the bonds that back mortgages, as they will both see diminishing returns. If fewer of those bonds are purchased, it could send rates back up.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: diana olick
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Weekly mortgage rates fall further, but only refinance applications rise

It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers. Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA appli


It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers. Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA appli
Weekly mortgage rates fall further, but only refinance applications rise Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: diana olick
Keywords: news, cnbc, companies, week, rise, rates, fall, mortgage, applications, drop, fell, rate, weekly, higher, refinance, lower, volume


Weekly mortgage rates fall further, but only refinance applications rise

It’s almost as if falling mortgage rates are becoming hum-drum, at least for homebuyers.

Total mortgage application volume increased 1.3% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 40% higher than a year ago, largely because lower mortgage rates are strengthening the refinance market.

Rates have fallen in three of the last four weeks and are now at the lowest level since September 2017. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.06% from 4.14%, with points decreasing to 0.35 from 0.38 (including the origination fee) for loans with a 20% down payment. That is 78 basis points lower than a year earlier.

“Markets last week reacted to a more dovish FOMC statement and forecast, with Treasury yields falling after the meeting,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “Mortgage rates dropped again for most loan types, which led to an increase in refinance activity, partly driven by a 9% jump in VA applications.”

The drop spurred more refinance activity, with those applications rising 3% for the week and a striking 92% annually. As home values continue to rise, more borrowers become eligible to refinance, and so each drop in rates brings out more business for lenders.

Mortgage applications to purchase a home, however, fell 1% for the week but were 9% higher than a year earlier. Buyers are less sensitive to weekly rate moves. Existing home sales did move slightly higher in May from April, as rates fell, but they were still lower than a year ago. Buyers continue to face high prices and low supply of affordable homes.

“Now at almost the halfway mark of 2019, we have generally seen a stronger purchase market than last year, despite still-tight existing inventory and insufficient new construction,” Kan said.

Sales of newly built homes fell unexpectedly sharply in May, despite lower mortgage rates. Affordability appeared to be the culprit, although some blamed the drop in weaker consumer sentiment in the overall economy.


Company: cnbc, Activity: cnbc, Date: 2019-06-26  Authors: diana olick
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Lowest mortgage rates in a year and a half don’t impress homebuyers

Mortgage rates are falling fast but not enough to offset high home prices. Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7%


Mortgage rates are falling fast but not enough to offset high home prices. Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7%
Lowest mortgage rates in a year and a half don’t impress homebuyers Cached Page below :
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Lowest mortgage rates in a year and a half don't impress homebuyers

Mortgage rates are falling fast but not enough to offset high home prices. Buyers are still pulling back.

Total mortgage application volume increased 1.5% last week from the previous week and 12% from a year earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. The gains were driven by refinances.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.23% from 4.33% by the end of last week, with points decreasing to 0.33 from 0.42 (including the origination fee) for loans with a 20% down payment.

“Mortgage rates dropped to their lowest level since the first week of 2018, driven by increasing concerns regarding the ongoing trade tensions with China and Mexico,” said Mike Fratantoni, MBA senior vice president and chief economist. “Some borrowers, particularly those with larger loans, jumped on the opportunity to refinance, bringing the index and average refinance loan size to their highest levels since early April. Additionally, refinances for FHA and VA loans jumped by 11%.”

Total refinance volume rose 6% from the previous week and was nearly 33% higher than a year ago, when interest rates were 52 basis points higher. The refinance share of mortgage activity increased to 42.2% of total applications from 39.7% the previous week.

Refinances are highly rate-sensitive, and the drop in rates added about 2 million more borrowers to the pool of those who could benefit from a refinance, according to Black Knight, a mortgage software and analytics company.

Mortgage applications to purchase a home, however, fell 2% for the week and were barely 0.5% higher than a year ago. High prices continue to sideline buyers, especially first-time buyers, who are a growing segment of the market. Millennials are aging into their prime homebuying years, but they are saddled with debts, are likely paying high rents and are facing one of the least-affordable markets in decades.

“Coming out of the Memorial Day holiday, and likely impacted by the financial market volatility caused by the trade tensions, purchase application volume declined for the week. Potential homebuyers may be more cautious given the heightened economic uncertainty,” Fratantoni said.

Mortgage rates continued to fall sharply this week to the lowest level since August 2017. More economic data in the coming days, including the all-important monthly employment report Friday, could cause another strong move in either direction.


Company: cnbc, Activity: cnbc, Date: 2019-06-05  Authors: diana olick
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Mortgage applications pull back 2.7% as rates turn higher again

Total application volume fell 2.7 percent compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Refinances, which are highly sensitive to weekly interest rate moves, pulled the volume lower. Borrowers saw a sharp drop in interest rates in December and jumped to take advantage at the start of this year. Mortgage applications to purchase a home fell 2 percent for the week but were 13 percent higher than a year ago. “Oftentimes, a big loss in eq


Total application volume fell 2.7 percent compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Refinances, which are highly sensitive to weekly interest rate moves, pulled the volume lower. Borrowers saw a sharp drop in interest rates in December and jumped to take advantage at the start of this year. Mortgage applications to purchase a home fell 2 percent for the week but were 13 percent higher than a year ago. “Oftentimes, a big loss in eq
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Mortgage applications pull back 2.7% as rates turn higher again

After two weeks of sizable gains, mortgage demand cooled last week.

Total application volume fell 2.7 percent compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. Volume was 3.3 percent higher than a year ago.

Refinances, which are highly sensitive to weekly interest rate moves, pulled the volume lower. Applications to refinance a home loan fell 5 percent for the week and were 7 percent lower than a year ago but were still at the highest level since spring.

Borrowers saw a sharp drop in interest rates in December and jumped to take advantage at the start of this year. Last week, however, rates rose slightly. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.75 percent from 4.74 percent, with points decreasing to 0.44 from 0.45 (including the origination fee) for loans with a 20 percent down payment.

The change was tiny, but so many borrowers have already refinanced at rock-bottom rates that there was a small pool of those left who can still benefit from a refinance. Rates are now 11 basis points lower than the previous month but still 39 basis points higher than a year ago.

“Reversing the recent downward trend, borrowers saw increasing rates for most loan types last week, as better-than-expected unemployment claims, easing trade tensions and stabilization in the equity markets ultimately led to a rise in Treasury rates,” said Joel Kan, an MBA economist.

The refinance share of mortgage activity decreased to 44.5 percent of total applications from 46.8 percent the previous week.

Mortgage applications to purchase a home fell 2 percent for the week but were 13 percent higher than a year ago. Purchase volume is less sensitive to weekly rate moves, and buyers today continue to be frustrated by high home prices and short supply of entry-level homes. Sales of existing homes fell sharply in December, according to a report this week from the National Association of Realtors. Most blamed that on weaker affordability.

Interest rates took a breather to start this week, as investors saw renewed concern about the direction of trade talks between the U.S. and China. Stock markets sold off.

“Oftentimes, a big loss in equities markets can send money running to the bond market where it benefits interest rates,” said Matthew Graham, chief operating officer at Mortgage News Daily. “This was the case overnight with Chinese stocks leading the way. The strong start in bonds allowed lenders to keep rates roughly unchanged and — in some cases — slightly lower.”


Company: cnbc, Activity: cnbc, Date: 2019-01-23  Authors: diana olick, lucy nicholson
Keywords: news, cnbc, companies, lower, rates, week, start, 27, mortgage, higher, turn, interest, volume, saw, refinance, fell, applications, pull


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Mortgage applications plummet nearly 10% to end 2018, despite lower rates

Mortgage interest rates fell to the lowest level in four months, but that did nothing to spark activity in the mortgage market. Volume was 21 percent lower than a year ago and the lowest level in 18 years. The numbers are surprising, given that homebuyers and homeowners looking to refinance could have taken advantage of lower interest rates. While rates were down, most borrowers who qualified already refinanced to far lower rates. Mortgage rates moved even lower to start 2019, falling to the low


Mortgage interest rates fell to the lowest level in four months, but that did nothing to spark activity in the mortgage market. Volume was 21 percent lower than a year ago and the lowest level in 18 years. The numbers are surprising, given that homebuyers and homeowners looking to refinance could have taken advantage of lower interest rates. While rates were down, most borrowers who qualified already refinanced to far lower rates. Mortgage rates moved even lower to start 2019, falling to the low
Mortgage applications plummet nearly 10% to end 2018, despite lower rates Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: diana olick, adam jeffery
Keywords: news, cnbc, companies, mortgage, applications, end, volume, nearly, rates, lower, lowest, weeks, week, shutdown, despite, refinance, 2018, level, plummet


Mortgage applications plummet nearly 10% to end 2018, despite lower rates

Mortgage interest rates fell to the lowest level in four months, but that did nothing to spark activity in the mortgage market.

Total mortgage application volume dropped 9.8 percent at the end of last week from two weeks earlier, according to the Mortgage Bankers Association’s seasonally adjusted index. The results included an adjustment for the Christmas holiday. Volume was 21 percent lower than a year ago and the lowest level in 18 years.

The numbers are surprising, given that homebuyers and homeowners looking to refinance could have taken advantage of lower interest rates. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 4.84 percent from 4.86 percent a week earlier, with points decreasing to 0.42 from 0.47 (including the origination fee) for loans with a 20 percent down payment.

That is the lowest level since September. The rate has fallen 24 basis points in the last four weeks but ended the year still 62 basis points higher than one year ago.

“Investors continued to show a preference for safer U.S. Treasurys, as concerns over U.S. and global economic growth, along with uncertainty over the current government shutdown, drove rates lower,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting.

Applications to refinance a home loan decreased 12 percent over the two weeks and ended last week 35 percent below the same week one year ago. While rates were down, most borrowers who qualified already refinanced to far lower rates. The pool of borrowers who could benefit from a refinance, simply on the rate change, is very small.

Mortgage applications to purchase a home fell 8 percent during the last two weeks and ended 6 percent lower than the same week one year ago. Purchase volume is at the lowest level since February 2017.

While most housing data can be “noisy” around the holidays, depending on which days of the week businesses are closed, there is arguably a slowdown in the housing market. Buyers are still facing high prices, although the gains continue to shrink. Local markets are seeing an increased supply of homes for sale, and that has some sellers reducing their asking prices. But buyers are also faced with rising uncertainty in the economy, a volatile stock market that has seen significant losses, and a partial government shutdown.

“Part of the decline in mortgage applications was possibly because of the government shutdown, as concerns over delays in FHA application processing times likely contributed to the weakness in activity,” Kan said.

Mortgage lenders are still closing loans, despite the shutdown, but there was some concern over flood insurance. Initially, FEMA declared it would not issue flood insurance policies during the shutdown but then reversed course under heavy pressure from housing industry associations.

Mortgage rates moved even lower to start 2019, falling to the lowest level since last spring, according to Mortgage News Daily. While they could continue their slide amid healthy investor demand for bonds, they could also reverse.

“Despite the strong start to the new year, there are still risks on the horizon,” said Matthew Graham, chief operating officer at Mortgage News Daily. “If economic data is exceptionally strong in the coming days, or if stocks find a reason to surge significantly higher, the party might be over for the time being.”


Company: cnbc, Activity: cnbc, Date: 2019-01-02  Authors: diana olick, adam jeffery
Keywords: news, cnbc, companies, mortgage, applications, end, volume, nearly, rates, lower, lowest, weeks, week, shutdown, despite, refinance, 2018, level, plummet


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Should you buy, sell or refinance a home in 2019

As we head into 2019, a complicated landscape in real estate has emerged. For a decade in a rebounding U.S. economy amid cheap loans, home prices have marched steadily higher. That might sound OK if you’re looking to sell a home, but not so fast. And the number of homes for sale is rising, giving shoppers more homes to choose from. Joining Jon Fortt to talk real estate: CNBC’s Diana Olick, Realtor.com CEO Ryan O’Hara and real estate agent Josh Flagg of Bravo’s Million Dollar Listing Los Angeles.


As we head into 2019, a complicated landscape in real estate has emerged. For a decade in a rebounding U.S. economy amid cheap loans, home prices have marched steadily higher. That might sound OK if you’re looking to sell a home, but not so fast. And the number of homes for sale is rising, giving shoppers more homes to choose from. Joining Jon Fortt to talk real estate: CNBC’s Diana Olick, Realtor.com CEO Ryan O’Hara and real estate agent Josh Flagg of Bravo’s Million Dollar Listing Los Angeles.
Should you buy, sell or refinance a home in 2019 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-12-26  Authors: jonathan kim, jon fortt
Keywords: news, cnbc, companies, sell, refinance, market, homes, sale, estate, buy, sound, youre, talk, higher, steadily, 2019, real


Should you buy, sell or refinance a home in 2019

It’s the most expensive purchase many of us even consider: A place to live.

As we head into 2019, a complicated landscape in real estate has emerged. For a decade in a rebounding U.S. economy amid cheap loans, home prices have marched steadily higher. When the market bottomed in February 2009, the median sale price for a home was $140,000. Last month it was nearly $258,000.

That might sound OK if you’re looking to sell a home, but not so fast. Interest rates are creeping higher, reducing how much buyers can borrow. And the number of homes for sale is rising, giving shoppers more homes to choose from. Are we heading into a healthier housing market? Or a more dangerous one?

Joining Jon Fortt to talk real estate: CNBC’s Diana Olick, Realtor.com CEO Ryan O’Hara and real estate agent Josh Flagg of Bravo’s Million Dollar Listing Los Angeles. Season 11 kicks off January 3.


Company: cnbc, Activity: cnbc, Date: 2018-12-26  Authors: jonathan kim, jon fortt
Keywords: news, cnbc, companies, sell, refinance, market, homes, sale, estate, buy, sound, youre, talk, higher, steadily, 2019, real


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