Homebuyers were not enticed to refinance existing home mortgages despite having retained the same interest rates from the previous week. In a recent report from CNBC, mortgage application volume had increased by a mere 1.3 percent on a seasonally adjusted basis from week to week.
The nominal increase was confirmed by the Mortgage Bankers Association and attributed the increase entirely on refinances done on existing loans. Compared to the previous week, the refinance loans had jumped by 3 percent on a seasonally adjusted basis. In the past four weeks, this segment's volume had risen by a total of 18 percent.
In a separate survey as reported by CNBC, the National Association of Home Builders said that the rates for the week was 17 percent higher than levels recorded at the same period in 2015. According to NAHB Chief Economist Robert Dietz, "Builders remain cautiously optimistic about construction growth in 2016. Solid job creation and low mortgage interest rates will sustain continued gains in the single family housing market in the months ahead."
In another report, the Mortgage Bankers Association noted a week over week rise on an unadjusted basis. The MBA's report indicated a 2 percent increase from the previous week.
The report, as published on 247WallSt.com, also reported an increase in mortgage backed securities. The rise was attributed to the recent events in Doha where OPEC leaders failed to reach an agreement on capping production of oil. As a result, market traders sold off their oil investments and shifted to bonds.
This movement carried with it mortgage loans with an increase on Monday and finally settling to the current level on Tuesday. The loan rates for 30 year fixed mortgages had risen by 0.01 percent from 3.82 percent to 3.83 percent. On the other hand, jumbo 30 year fixed rate mortgages rose by 0.03 percent from 3.74 percent to 3.77 percent.
