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Mortgage applications gain steam in August

The title insurance industry may be quite happy with the progress in the mortgage and housing markets, as a more significant level of consumers are showing interest in purchasing properties.

Overall mortgage application volume rose 1.4 percent for the week ending Aug. 15, 2014 compared to the previous week, the Weekly Mortgage Applications Survey from the Mortgage Bankers Association showed. This still rose 1 percent when not seasonally adjusted, as well.

A minor decline occurred in the Purchase Index, as it slipped 0.4 percent in the most recent reading from the previous measurement, the report showed. When unadjusted, the figure dropped 2 percent.

"Interest rates dropped last week as a result of the ongoing turmoil in Ukraine and other international concerns, which in turn pushed mortgage rates lower," said Mike Fratantoni, chief economist at MBA. "Overall application volume for conventional mortgages increased. However, there was a 5.9 percent decline in the number of applications for government mortgages, with both purchase and refinance applications declining.  Within the government sector, this decline was led by an 8 percent decline in unadjusted Department of Veterans Affairs applications, while Federal Housing Administration and Rural Housing Service unadjusted applications also fell by 5 percent and 3 percent respectively."

Refinances rose 3 percent during the week compared to the previous measurement, the report noted. There also was a gain in the refinance share of mortgage activity, as it improved to 55 percent of the total share, slightly higher than the previous week's 54 percent. The adjustable-rate mortgage share was 7.8 percent in the latest reading.

Mortgage rates drop again
The average mortgage rate levels declined slightly throughout the country in recent months, which may help encourage some to take advantage of a mortgage application.

The 15-year fixed-rate mortgage averaged 3.24 percent during the latest measurement, slightly down from the previous week's figure of 3.24 percent, according to a report from Freddie Mac.

"Mortgage rates were down slightly amid a week of light economic reports," said Frank Nothaft, vice president and chief economist at Freddie Mac. "Of the few releases, retail sales [PDF] were virtually unchanged in July after a 0.2 percent increase in June, ending five months of increases. Excluding motor vehicles and parts, retail sales were up 0.1 percent last month."

The five-year Treasury-indexed hybrid adjustable-rate mortgage also fell, as it was 2.97 percent, the report added. One week earlier, it was 2.98 percent.

By: Equity National   August 20, 2014     Closing

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