Mortgage applications in the United States only saw a slight increase of 0.1% in contrast to the week before. This has been far better news compared to the interest rates which has been flat lining for past week.
To give light on the details, CNBC shares the latest statistics from the Mortgage Bankers Association. Overall weekly mortgage application report showed a 0.1 % increase versus last week. However, compared to last year of the same week the stats are significantly higher which showed an 18% increase.
MBA vice president, Lynn Fisher, says that refinancing applications played a huge part in the increase of weekly mortgage application rates. Refinance requests was said to be the highest since the end of the first quarter of this year with a percentile rate of 53. In effect, gave the refinancing index a percentile rate of 3.1. The latter according to Fisher is the highest rate since the month of May. In addition to that, although this week's applications compared to the previous week have dropped to 4% in terms of purchases, it is noticeably higher by 20% against last year.
Reuters give figures of the previous week on refinance share with 51.3% and a 3.5% drop for loan applications for home purchases. The details given according to the MBA are said to come from 75% of the United States retail residential mortgage applications.
CNBC also adds that despite the increasing the weekly mortgage rates, interest rates based from a 30 year fixed rate mortgage didn't budge for loan applications for $417,000 below with 4.13 % and 4.08 % for loans above the $417,000 mark.
Tolbert Rowe, vice president for the Bay Capital Mortgage based in Easton, Maryland, says that the Federal Reserve will increase their rates as the economy shows more improvement. The BCM and other mortgage lenders said that clients have been vocal in terms of monitoring the rise and fall of weekly mortgage interest rates.
Refinancing share has been a primary factor for the slight increase of mortgage applications of 0.1% in comparison to the week before. There still has been no change in the long term mortgage rates that would leave the market jumping for joy. The economy will be closely watched by the Federal Reserve and so will the clients for mortgage companies.