Wednesday, July 21, 2010

Applicationrs Rise....Are you taking advantage?

Home loan application volume increased 7.6 percent on a seasonally adjusted basis for the week ending July 16, the Mortgage Bankers Association said today.

Refinance applications increased 8.6 percent week-to-week to the highest level since the week ending May 15, 2009.

The increase was led by a 10.7 percent rise in conventional refinance applications, offset by a 4.2 percent decline in government refinance apps.

“As rates on 30- and 15-year fixed-rate mortgages declined to the lowest levels recorded in the survey, refinance activity increased last week, said Michael Fratantoni, MBA’s Vice President of Research and Economics, in a release.

“The refinance index is up almost 30 percent over the past 4 weeks, but is still well below the peak seen last spring.”

He noted that those aiming to get the lowest interest rate are getting conventional loans, while those looking for a low down payment requirement are grabbing FHA loans.

Purchase Applications Rise

The seasonally adjusted purchase index increased 3.4 percent from a week earlier, thanks to an eight percent increase in government apps (FHA loans, VA loans).

The unadjusted purchase index was up 15.3 percent compared with the previous week (which included the Independence Day holiday), but off 35.7 percent from year-ago levels.

Interest Rates Hit New Lows

Meanwhile, the popular 30-year fixed fell to 4.59 percent from 4.69 percent, the lowest level ever recorded in the MBA’s survey, while the 15-year fixed slipped to 4.05 percent from 4.12 percent, also a record low.

Finally, the one-year adjustable-rate mortgage dipped to 7.17 percent from 7.20 percent, but clearly remains an unfavorable option.

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

I am an actual person so if you are interested in refinancing you can receive real time quotes and payment options by calling me directly. You can reach me, Gene Neal at 877-276-6400 Ext 101.