Consensus is Languishing mortgage applications

Mortgage Bankers Association (MBA) today released its Weekly mortgage applications survey per week
ending 1 April 2011.

MBA loan application test includes more than 50% of all u.s. residential
mortgage loan applications made by mortgage bankers, commercial banks, and
thrifts. The data gives economists view the snapshot of the demand from consumers for
loans guaranteed by mortgages. In the fall of the environment, an upward trend in the rate of mortgage refinance
applications involves consumers seek to lower monthly payments. If
consumers have the opportunity to reduce their monthly mortgage payment and more
disposable income through refinancing can be a positive for the economy as a
whole (can increase consumer spending. You can also import duties to pay down personal
commitments faster). The trend decline in purchase applications at home shall entail
customer demand is shrinking.

Fragments from the release.

Composite market index, measure the size of the application, mortgage loans,
decreased percentage of 2.0 on a seasonal basis from one week earlier. On
as the basis for customized, the index fell 1.5% in comparison with the previous
week.

Refinance index dropped 6.2 percent to its lowest level since February
25, 2011, on the basis of seasonally.  The four week moving average is down 3.
per cent.  Refinance mortgage business share fell to 61.
percentage of the total applications from 64.3 percent the previous week. Is
lowest refinance share from 7 May 2010. 

Seasonal index purchase increased 6.7 percent to its highest
the level of the year.  -Customized
The purchase index increased 7.0 percent compared with the previous week and was
16.8% lower than the same week a year ago.  The four week moving average is to 0.9
per cent.

"The purchase application volume increased in the last week
achieve the highest level of the year, but remains relatively low by
historical standards, at levels last seen in 1997, "said Michael Fratantoni,
Vice President, MBA research and economics.

"Growth in the last week was due
to a sharp increase in applications for loans to the Government. Borrowers were likely
reasonable to apply prior to the scheduled increase in insurance premiums that FHA
became effective last Friday. " Fratantoni, still

The average rate on 30-year fixed-rate
mortgages increased to 4.93 per cent of 4.92 percent of points reduction
0.70 of 0.18 (together with a fee from the origination) to 80 percent loan to value
(LTV) ratio of loans. The effective rate fell from last week.

Decreased average rate mortgages fixed interest rate of 15-year
4.14 per cent from 4 per cent from 16 points to increase to 1.08 with 0.99
(this charge origination) to 80 percent LTV loans. The effective interest rate
also increased in the last week.

"Rates were flat last week, but refinance activity decreased, as still pool of borrowers, who have both the incentive and ability to qualify to refinance shrink." said Michael Fratantoni, Vice President of Research in economics and MBA. The thickness of the 168 hours earlier in the piece aptly titled: "the pool of eligible candidates dried up refinance current rates," we made a similar observation: "recent lower rates mortgage have Done little to motivate his potential candidates for refinance." said MND in Editor Adam Quinones. "There is a great surprise as the most qualified borrowers simply does not have an incentive to refinance because already last year when the rate was near record lows. Other than the qualifications continue to prevent many folks lowering their monthly payments. However, we expect a slight increase in purchase activity to the spring buying season. "

(Incidentally, purchase applications picked up this week as refinance applications decreased. Go figure ...)

Read more about: pool of eligible candidates dried up Refinance current rates

Read more about: refinance demand stale as Rally rates