Wednesday, March 24, 2010

Refinance Share Lowest Since October

Mortgage demand slipped week-to-week thanks to lackluster refinance activity, the Mortgage Bankers Association said today.

The home loan application index fell 4.2 percent on a seasonally adjusted basis (-3.9% unadjusted) for the week ending March 19.

Refinances were off 7.1 percent compared with the previous week, while the seasonally adjusted purchase index climbed 2.7 percent.

The unadjusted purchase index rose 2.8 percent, but was still 15 percent lower than the same period a year ago.

Meanwhile, the refinance share of applications fell to 65 percent from 67.3 percent, the lowest point since October 2009, despite interest rates hovering near record lows.

The uber-popular 30-year fixed-rate mortgage jumped up to 5.01 percent from 4.91 percent during the week, while the 15-year fixed increased to 4.33 percent from 4.24 percent.

The one-year adjustable-rate mortgage stood unchanged at 6.75 percent, while the ARM-share of total applications increased to 4.8 percent from 4.6 percent.

The rates are good for loans at 80 percent loan to value with a loan origination fee of around 0.75 percent for the fixed loans and 0.32 percent for ARMs.

The MBA’s weekly survey covers more than half of all retail, residential loan applications, but does not factor out multiple or declined apps, which have surely risen since the mortgage crisis got underway.

Any questions or concerns don’t hesitate to contact me, Gene Neal your Mortgage Expert.

Tel (631) 687-3510 Ext. 101

Fax (631) 687-3513