mortgage purchase application index: Mortgage Purchase Applications Rise 3.9% The Past Week
- 08/20/09 12:49 AM
According to the MBA, after five consecutive weeks in which the mortgage purchase application index remained below 270, signaling weak demand for real estate, the index rose 3.9% this past week to 277.7. The 30-year fixed rate mortgage fell from 5.38% to 5.15% for the week ending August 14th. Mortgage purchase applications are an indicator of future demand for real estate. Typically a potential buyer will apply for a mortgage, write a contract that goes "pending", and then eventually close on the property for a "sale". The reason why demand is a critical component of a housing recovery is because the number … (3 comments)
mortgage purchase application index: Mortgage Purchase Applications Remain Steady But Weak
- 08/12/09 01:06 AM
The Mortgage Bankers Association announced today that the mortgage purchase application index remains steady but weak as it rose just 1.1% from last week to 267.3. It is the fifth consecutive week that the index has been below 270. The 30-year fixed rate mortgage jumped from 5.17% to 5.36% for the week ending the July 31, 2009. This data continues to reinforce two ongoing trends. First, while demand for real estate appears to have bottomed from the lows we saw in January in the NAR existing home sales report, the current demand is being outpaced by the rate of homes going into foreclosure. In … (0 comments)
mortgage purchase application index: MBA: Mortgage Purchase Applications Hit 10-Week High
- 06/24/09 12:58 AM
In the latest sign that the housing market is indifferent to sub 5% mortgage rates, according to the Mortgage Bankers Association, the mortgage purchase application index jumped 7.3% to 280.3, the highest reading in over 10 weeks. This was despite the fact the average 30-year fixed rate mortgage was 5.44% for the week ending June 19th. Here is a comparison between NAR's seasonally adjusted existing home sales and Freddie Mac's 30-year fixed rate mortgage survey over the past several months, this data reveals that record low mortgage rates have had no meaningful impact on demand. You can call it the law of diminishing returns, price … (6 comments)
mortgage purchase application index: Mortgage Purchase Applications Remain Sluggish
- 05/27/09 02:00 AM
Despite historically low mortgage rates, a first time home buyer tax credit, record housing affordability, and a significant but albeit skeptical surge in consumer confidence (if consumer confidence is so high, why aren't more people applying to purchase a home?) yesterday, the mortgage purchase application index remains anemic. The mortgage bankers association announced today that their mortgage purchase index rose just 1% from last week to 256.6, well below a rating that would support meaningful demand for real estate. In fact, out of the past 17 weeks, only once has the index risen above 268. To put this into perspective, from December … (2 comments)
mortgage purchase application index: Mortgage Purchase Applications Down 4.4%
- 05/20/09 01:51 AM
According to the Mortgage Bankers Association, the mortgage purchase application index was down -4.4% from last week to a seasonally adjusted rate of 254. I continue to write about this index every week waiting for a signal that demand for real estate is going to pick up for the peak buying season this summer but there simply has not been any indication of this. The systemic problem that continues to plague the housing market is that there are too many homes for sale and not enough demand for them, in other words, there is a supply and demand imbalance. What we are seeing is … (0 comments)
mortgage purchase application index: Mortgage purchase applications continue to face a headwind
- 03/11/09 03:11 AM
Despite the 30-year fixed rate mortgage sinking below 5% to 4.96%, and despite housing affordability being at a record high, and despite an $8,000 first time home buyer tax credit, Americans continue to show very little interest in buying homes. The Mortgage Bankers Association announced today that the mortgage purchase index still remains low at 253.3 despite rising 7.1% from last week. To give this number some context, three weeks ago, before President Obama signed off on the $8,000 first time home buyer tax credit, the purchase index stood at 257.3. What this means, is what I have thought initially, and that was that … (1 comments)
mortgage purchase application index: Mortgage purchase applications not responding to $8000 home buyer tax credit
- 02/25/09 01:44 AM
Last week I wrote a post about how mortgage purchase applications remained alarmingly low despite Congress passing the recent $8,000 first time home buyer tax credit. The goal of the $8,000 first time home buyer tax credit was to get people off the fence and to stimulate demand for real estate. And in order for first time home buyers to buy a home, they need to apply for a mortgage, and this means a mortgage purchase application. So, after last weeks dismal mortgage purchase application index I thought to myself, let's give it another week or two and continue to watch the index before we rush to … (3 comments)
According to the MBA, after five consecutive weeks in which the mortgage purchase application index remained below 270, signaling weak demand for real estate, the index rose 3.9% this past week to 277.7.
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