Dennis Norman
Last week I said that in my real estate career I’ve not seen a time that lower interest rates didn’t spur some sort of activity in the market. Finally,it happened,at least a little. According to the Mortgage Bankers Association (MBA) weekly mortgage applications survey for the week ending July 16,2010,the MBA Purchase Index (a measure of the volume of loan applications related to a home purchase) increased 3.4 percent from the week before. This makes only the second time in the last 11 weeks this index has increased. The four-week moving average of home purchase mortgage applications made some progress but has not come out of the red yet and is down 1.3 percent.
After last weeks dip in the Mortgage Refinancing index,it is back on the rise increasing 8.6 percent hitting the highest level since May 15,2009. The refinance share of mortgage applications increased to 79.4 percent,the highest level since April 2009.
Last week I gave my “we can’t ignore reality”speech and,even though I am encouraged by the slight increase in home purchase mortgage applications,I think we still have many underlying issues that are going to challenge the real estate market for some time to come.
Interest rates for the week ended July 16,2010:
- 30 year fixed-rate mortgage interest rates decreased to 4.59 percent (can you say CHEAP??) from 4.69 percent,with fees increasing to 1.04 percent from 0.96 percent on loans that are 80 percent of the value of the home. This is the lowest interest rate for a 30-year fixed rate mortgage in the history of the MBA index.
- 15 year fixed rate mortgage interest rates decreased to 4.05 percent from 4.12 percent,with fees decreasing to 0.88 percent from 1.04 percent on loans that are 80 percent of the value of the home. This is the lowest interest rate for a 15-year fixed rate mortgage in the history of the MBA index
- One-year ARM interest rates decreased slightly to 7.17 percent from 7.20 percent,with fees increasing to 0.24 percent from 0.22 percent on loans that are 80 percent of the value of the home.
No related posts.
Related posts brought to you by Yet Another Related Posts Plugin.