Mortgage applications rose 3.2% in the week ending February 23 and were up 8.8% vs. the same week last year according to Mortgage Bankers Association. The average rate for 30-year fixed rate loans fell to a 7-week low of 6.16%.
“Mortgage borrowers continue to refinance their mortgages at a higher frequency than historically would have occurred given the rise in mortgage rates over this year,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“But the wide proliferation of adjustable-rate mortgages (ARMs) originated in the past few years that are nearing their first interest-rate adjustment provides borrowers an incentive to refinance into a lower-cost ARM or fixed-rate mortgage. In addition, borrowers who might have considered a prime rate home equity loan for a home improvement or other need are turning to cash-out refinance options now that the prime rate is above 8 percent.
The Cash-Out Refinance Report also revealed that properties refinanced during the third quarter of 2006 experienced a median house-price appreciation of 33 percent during the time since the original loan was made, down from a revised 34 percent in second quarter 2006. For loans refinanced in the third quarter of 2006, the median age of the original loan was 3.4 years, about two months older than the median age of loans refinanced during the second quarter of 2006.
- http://originatortimes.com
Option ARMs remain a viable option in the mortgage environment. Despite the many problems in the mortgage market, lending brokers are still willing to make risky loans - including those that allow borrowers to make monthly payments that don't even cover the interest (so-called 'option ARMs'). Also , as reported in Money New York, still is surprisingly still widely available are 'no-doc' loans, which require no income verification, and mortgages with no downpayment according on the CNN Money report on Apr 14, 2007
Good news for those applying for mortgages. Mortgage rates sunk to 6.18% with the benchmark 3-year fixed rate mortgage indicator, ending November 22. The rate had been 6.24% one week earlier and a year ago it stood at 6.8%.
Applications for new home buyers slid 2.8% and applications for all mortgages fell 3.7% for the week of November 17th.
Mortgage applications rose 8.1% and refinancing applications surged. The 30-year fixed rate mortgage fell 15 basis points to 5.98% last week which was the lowest since October 2005.
Home builder stocks rose on the data which was further fueled by a Toll Bros., the luxury home builder. Report that they anticipate a market bottom. Additionally, Citigrop upgraded the home builder stock sector.
Mortgage rates fall once again as the 30- year fixed-rate mortgage rates move down. Rates have fallen for the 10 of the last 11 weeks according to Freddie Mac.
The 5-year adjustable mortgage stayed at 6%. The 1-year ARM averaged 5.46%, which is a 6-month low.
Notwithstanding, mortgage application index soared to its highest level since January. The activity shot up 17% according to the Mortgage Bankers Association.
Meanwhile, job growth is seen as sluggish even as jobless claims fall for the 4th drop in five weeks. Private employers added 78,000 jobs in September. U.S. factory orders were flat in August and CEO’s are gloomy on future of the economy. The Business Council and Conference Board said that 45.6 % of the CEO’s polled expect the economy to worsen over the next 6 months.
