Dennis Norman
The Mortgage Bankers Association (MBA) released its weekly mortgage applications survey for the week ending May 7, 2010. The report showed the MBA Purchase Index (a measure of the volume of loan applications related to a home purchase), after increasing the during each of the last three weeks, decreased 9.5 percent from the week before. The four-week moving average of home purchase mortgage applications is up 4.4 percent.
Mortgage Refinancing shot up 14.8 percent last week and the refinance share of mortgage applications increased significantly to 57.7 percent this week from 51.9 percent last week. The share of adjustable rate loans remained unchanged from the prior week at 6.3 percent of all loans.
“The recent plunge in rates on US Treasury securities, due to a flight to quality as investors worldwide sought shelter from the Greek debt crisis, benefitted US mortgage borrowers last week. Rates on 30-year mortgages dropped to their lowest level since mid-March. As a result, refinance applications for conventional loans jumped, hitting their highest level in six weeks,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “In contrast, purchase applications fell almost 10 percent in the first week following the expiration of the homebuyer tax credit, as the tax credit likely pulled some sales into April that would otherwise have occurred in May or later.”
Interest rates and fees for the week:
- 30 year fixed-rate mortgage interest rates decreased slightly to 4.96 percent from 5.02 percent, with fees increasing to 0.91 percent from 0.92 percent on loans that are 80 percent of the value of the home.
- 15 year fixed rate mortgage interest rates decreased to 4.32 percent from 4.34 percent, with fees increasing to 0.81 percent from 0.80 percent on loans that are 80 percent of the value of the home.
- One-year ARM interest rates decreased to 6.86 percent from 7.03 percent, with fees increasing to 0.35 percent from 0.28 percent for loans that are 80 percent of the value of the home.
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