US Mortgage Applications Fell 3.2% Last Week

A definitive rise in mortgage interest rates over the last month is keeping borrowers at bay. Loan application volume fell 3.2 percent last week from the previous week on a seasonally adjusted basis, according to the Mortgage Bankers Association. Volume is now skewing toward larger loans for more expensive homes.

Refinance applications, which are most rate-sensitive, decreased 5 percent from the previous week, seasonally adjusted to the lowest level since early September. They are still 4 percent higher compared with one year ago, when interest rates were slightly higher. The refinance share of mortgage activity now stands at 58.7 percent of total applications.

“The 30-year fixed rate has increased almost 20 basis points since a recent low, and the refinance index has decreased in four of the last five weeks,” said Michael Fratantoni, the association’s chief economist.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.14 percent from 4.18 percent, with points increasing to 0.49 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio loans.

via CNBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza