Loan Demand Barely Budges
Loan Demand Barely Budges
Mortgage application volume held mostly steady last week, only nudging out a 0.1 percent gain on a seasonally adjusted basis in refinancing and home purchase applications. However, the Mortgage Bankers Association reports that application volume is significantly better than a year ago: up 8 percent year-over-year.
MBA reports that refinance volume dropped 1 percent for the week ending July 17 from the previous week. On the other hand, applications for home purchases ticked up 1 percent on a seasonally adjusted basis. Purchase applications are 18 percent higher than they were a year ago.
MBA also reports that the average loan size has been decreasing on purchasing applications since May, despite recent rises in home prices.
"Given the overall increase in purchase volume, we view this as a positive development, as it signifies more first-time home buyers getting into the market," says Mike Fratantoni, chief economist for the MBA. "We are not back to levels typical of a healthy market, but for the first time in a while, it is steadily improving."
MBA also reports that the 30-year fixed-rate mortgage remained unchanged last week at a 4.23 percent average.
MBA reports that refinance volume dropped 1 percent for the week ending July 17 from the previous week. On the other hand, applications for home purchases ticked up 1 percent on a seasonally adjusted basis. Purchase applications are 18 percent higher than they were a year ago.
MBA also reports that the average loan size has been decreasing on purchasing applications since May, despite recent rises in home prices.
"Given the overall increase in purchase volume, we view this as a positive development, as it signifies more first-time home buyers getting into the market," says Mike Fratantoni, chief economist for the MBA. "We are not back to levels typical of a healthy market, but for the first time in a while, it is steadily improving."
MBA also reports that the 30-year fixed-rate mortgage remained unchanged last week at a 4.23 percent average.
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