For two weeks in a row, mortgage movement barely moved, despite a slight drop in interest rates. According to the Mortgage Bankers Association (MBA), the total application volume went to only 0.8 percent last week on a seasonally adjusted basis from a week earlier.
CNBC reports that the gain in volume was attributed to applications to refinance that rose 2 percent from last week. Refinance volume is now 6 percent higher compared with the same week one year ago. Mortgage applications to purchase a home were essentially flat, down 0.1 percent from the previous week. Purchase volume, however, is 17.5 percent higher than it was one year ago.
The chief economist for MBA, Michael Fratantoni said, "Although total purchase applications were little changed for the week, this resulted from a combination of a small increase for conventional purchase loans, and a decrease for government purchase loans."
He then added, "We continue to see a decline in the average size of purchase loans, further indicating that entry-level buyers are beginning to return to the market."
The Realtors are still not disclosing any movement in first-time buyers, making their share just below one-third of home purchases in June. On the other hand, another report from Campbell/Inside Mortgage Finance said that the first-time buyer share is rising and is now to 38.3 percent of home purchases in June. The report also said that this share was not seen since 2010, a time first-time homebuyer activity was influenced by federal tax credit. These buyers usually compose 40 percent of the purchase market.
Nevertheless, the home ownership rate continued to drop in the second quarter. It dropped down to merely 64.3 percent and according to the U.S. Census, this is the lowest in 48 years. The decline follows the home price gains
CNBC reports that according to MBA, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.17 percent last week, the lowest level since June, from 4.23 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent loan-to-value ratio loans.For two weeks in a row, mortgage movement barely moved, despite a slight drop in interest rates. According to the Mortgage Bankers Association (MBA), the total application volume went to only 0.8 percent last week on a seasonally adjusted basis from a week earlier.
CNBC reports that the gain in volume was attributed to applications to refinance that rose 2 percent from last week. Refinance volume is now 6 percent higher compared with the same week one year ago. Mortgage applications to purchase a home were essentially flat, down 0.1 percent from the previous week. Purchase volume, however, is 17.5 percent higher than it was one year ago.
The chief economist for MBA, Michael Fratantoni said, "Although total purchase applications were little changed for the week, this resulted from a combination of a small increase for conventional purchase loans, and a decrease for government purchase loans."
He then added, "We continue to see a decline in the average size of purchase loans, further indicating that entry-level buyers are beginning to return to the market."
The Realtors are still not disclosing any movement in first-time buyers, making their share just below one-third of home purchases in June. On the other hand, another report from Campbell/Inside Mortgage Finance said that the first-time buyer share is rising and is now to 38.3 percent of home purchases in June. The report also said that this share was not seen since 2010, a time first-time homebuyer activity was influenced by federal tax credit. These buyers usually compose 40 percent of the purchase market.
Nevertheless, the home ownership rate continued to drop in the second quarter. It dropped down to merely 64.3 percent and according to the U.S. Census, this is the lowest in 48 years. The decline follows the home price gains
CNBC reports that according to MBA, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.17 percent last week, the lowest level since June, from 4.23 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent loan-to-value ratio loans.
