Mortgage Applications for the current week fall

The mortgage applications fell 16.2% for the current week.  The refinancings fell 24.1% which is indicative of the higher rates for mortgages – up to 5.25% from 4.81%.   It is likely that since rates were low for quite some time, most who could qualify for lower mortgage rates, did so.  As a result the benefit has likely been realized. 

The good news is the purchase index gained by 4.3% which is good news for supply. 

Overall, although the number is shocking from a percentage decrease perspective, the report is a positive .

Mortgage Applications fall 18.1% in the current week

The Mortgage Application index fell by 18.1% this week, largely on the back of refinancings declining by 21.9%.  The purchase index was not that great eiter as it fell by 0.6% for the current week.  This is up from a 4.2% decline last week.  Nevertheless, the purchase index is now down 3 straight weeks.  The average rate on a 30 year mortgage fell to 4.62% from 4.72% last week.  The low was reached in the March 27th week at 4.61%. 

This is not good news for the economy/global economy.  The spring will hopefully bring about a reduction of supply of homes.   It will not happen with applications declining at all time lows.  The so called Green shoots may die a quick death if housing does not improve in the spring.

US Mortgage Applications rose by 21.2% last week

Refinancings rose by 30%.  This is the highest level in 2 months
Purchases gained by 1.5%

The average rate on 30 year fixed rate loan dropped to 4.89% from 4.96% the month prior.   This equaled the lowest rate on record.  15 year mortgages fell to 4.52% from 4.54 last week. This was the lowest rate since June 2003.

Spring is coming and the US officials know it.    The mortgage relief program seems to be having some success in keeping rates down and prompting refinancings at the very least.  If the purchase index starts to increase, we should see it start to manifest in this weekly number.  So as the spring progresses in the US, we will be watching this data very closely for clues.  If housing stabilizes this can be enough to bring increased confidence back to the US and stop layoffs.  The twin threat remains housing and jobs.  This causes bank woes. 

Below is the 4 week moving average of the weekly change in the Purchase Index.  If this index can start to stay positive for an extended period we may have seen the bottom of prices and the mortgage rates that brings the buyers to the table. 

Mortgage Applications rose by 46% last week

Refinancings rose by 64%.
Purchase Index increased by 9.1%

The average rate on 30 year mortgage fell to 4.99%.  The low was 4.89% reached in Mid march. 

Today President Obama will announce details of his mortgage bailout plan in Phoenix Arizona.

Mortgage Applications fell 24.5% for the week

Refinancings fell by 30.3%
Purchases fell by 5.1%

The average rate on a 30 year mortgage fell to 5.19% from 5.29% the week before.  It bottomed at 4.89 in the week of Jan 9th before rising sharply to 5.24% the week after.  The rate was 5.73% last year. 

The housing situation remains bleak.  The officials talk of 4.5% mortgages but so far they do not have the banks willingness to go there.

Forex News Mortgage Applications rise by 15.8% for the current week

The average rate came in a 4.89% for the week, down from 5.07 the week before.  This is the lowest level since 1990 when the data was first collected.  This spurred on refinacings which  rose by 26%.  The purchase measure fell by 14%. 

With the mortgage rate coming down and the 30 year bond yield coming up the spread of mortgages to treasuries has narrowed to the lowest level since September.  This is getting more in line but still about 30 basis points higher than the spread that prevailed from 2005 to July 2008 when the credit spread started to move higher.   

Forex News Mortgage Applications fall in the current week

The Mortgage Applications fell the current week by 8.2%.  The average rate on a 30 year mortgage rose from 5.03% to 5.07%.  Despite the fall in 30 year treasury yields the spread to the 30 year mortgage remains very wide (green line in chart below).  Over the last few days, the mortgage rates available have declined (reports of a decline to 4.875%.  This will indeed help and is in the right direction if the housing market is to start to stabilize by making housing more affordable. 

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