Are record-low interest rates masking high-cost mortgage lending?

Are record-low interest rates masking high-cost mortgage lending?

Five leading economists weigh in and the answer may surprise you

Auction.com partners with Google to predict housing trends

Nowcast will predict in real time

The New York Times rambles, and mangles mortgages along the way

Mortgage finance and mortgage regulation aren’t the paper’s strong suits
W S
Lending

Mortgage applications edge down as rates hit record lows

Fewer Americans completed applications to purchase homes in the week ending Sept. 14, an industry trade group said. This cooling occurred despite interest rates hitting new lows.

The Mortgage Bankers Association's market composite index – a measure of loan application volume – edged down 0.2% from the previous week on a seasonally adjusted basis. The purchase index, which measures applications filed for mortgages on home purchases, fell 4%.

Refinance activity, on the other hand, grew 1% from the previous week, with applications tied to the Home Affordable Refinancing Program – or HARP 2.0 – representing 22% of all refinancing filings.

Homeowners seeking to refinance an existing mortgage dominated the marketplace, representing 81% of all applications.

The average contract interest rate for the 30-year, fixed-rate mortgage within conforming loan limits fell to 3.72%, the lowest rate in the survey's history, and down from 3.75%.

In addition, the 30-year, FRM with a jumbo loan balance of $417,000 or greater fell to 3.99% from 4% the previous week.

The average contract interest rate for a 30-year, FRM backed by the FHA remained unchanged at 3.55%, while the 15-year, FRM declined to 3.03% from 3.07% a week earlier.

The 5/1 ARM also declined to its lowest rate in survey history, reaching 2.61%.

kpanchuk@housingwire.com

Recent Articles by Kerri Panchuk

Comments powered by Disqus