Mortgage Applications are Decreasing
(Mortgage Bankers Association)
The mortgage market continues to deteriorate. Even though historically low interest rates, the mortgage composite index reached its worst level in over a decade (A grouping of equities, indexes or other factors combined in a standardized way, providing a useful statistical measure of overall market or sector performance over time. Also known as a "composite index" according to Investopedia). In the latest update from the Mortgage Bankers Association, for the week ended April 25, applications for home loans dipped 5.9% on a seasonally adjusted basis from one week earlier. The index fell 5% on an unadjusted basis.
Overall, the refinance share of mortgage activity accounted for 50% of total applications, which is its worst level since July 2009 and down from 51% a week earlier. In fact, the refinance share of mortgage activity has now dropped for 11 of the past 12 weeks.
The average interest rate for a 30-year fixed mortgage rate was still holding, at 4.49%. Meanwhile, the average rate for a 15-year fixed-rate mortgage went down, from 3.55% to 3.53%. Although mortgage rates are still near historic lows, details about the housing recovery will most likely draw more skepticism this year as higher prices and unmoving wages cause affordability issues. In the prior report, the MBA revealed that the average loan size for purchase applications had reached its highest level in the history of the survey, at $280,500.
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Lang Premier Properties are Birmingham Realtors specializing in Oakland County Real Estate. Stephanie is an agent with Max Broock in Birmingham, Michigan. See what past clients have to say about Stephanie Lang. Lang Premier Properties looks out for your best interests when you purchase a new custom luxury home. We always recommend working with an experienced luxury real estate agent when buying a new luxury estate.