TRADEX
GLOBAL INTERNAL COMMENTARY
Mortgage applications jump! The total number of applications was up 16%
from the previous week and the refinance index was up 15% from the previous
week. The mortgage rate was up on the
week to 3.73% from 3.67%. The share of applications to refinance was 78%
of the total, down from 79% the week before.
This number is volatile and sometimes is not the most accurate factor in
refinancings, but the market focuses on this.
IO’s are usually priced on the latest weekly number instead of the
4-week average, which I believe gives a clearer picture. The plain fact is that most borrowers who
could refi have already done so, and the “hidden” cost to refi is the new
guarantee “G” fees that the agencies are charging which are not reflected in
the mortgage rate. The fees have been
going up and will continue to rise as the government has found a new income
stream! We stand by our prediction that
the prepayments are going to dramatically slow, and that IO securities will
rise significantly in the next 2 quarters. With that being said, we are still
keeping a watchful eye. Keep nimble –
Michael Beattie
EXTERNAL
RESEARCH COMMENTARY
The total number of mortgage applications filed in the U.S. last week jumped 16% in the U.S. last week, the Mortgage Bankers Association said Wednesday. The refinance index rose 15% for the week ended Feb. 1 from the previous week, according to MBA's weekly survey, which covers more than three-quarters of all U.S. residential-mortgage applications. On a seasonally adjusted basis, the purchasing index increased 2.2% from the prior week, MBA said. Low interest rates have attracted new buyers and prompted many homeowners to refinance their existing mortgages. In the latest week, however, interest rates crept higher. The share of applications filed to refinance an existing mortgage totaled 78%, down slightly from the prior week's 79%. Adjustable-rate mortgages, or ARMS, made up 3.7% of total activity. The average rate on 30-year fixed rate mortgages with conforming loan balances rose to 3.73% from 3.67% in the prior week. Rates on similar mortgages with jumbo loan balances edged up to 3.96% from the previous week's 3.95%. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration, or FHA, increased to 3.53% from 3.48% in the previous week. The average rate for 15-year fixed rate mortgages edged up to 3% from 2.95% in the prior week. The 5/1 ARM average rate climbed to 2.72% from 2.6% a week earlier.
The total number of mortgage applications filed in the U.S. last week jumped 16% in the U.S. last week, the Mortgage Bankers Association said Wednesday. The refinance index rose 15% for the week ended Feb. 1 from the previous week, according to MBA's weekly survey, which covers more than three-quarters of all U.S. residential-mortgage applications. On a seasonally adjusted basis, the purchasing index increased 2.2% from the prior week, MBA said. Low interest rates have attracted new buyers and prompted many homeowners to refinance their existing mortgages. In the latest week, however, interest rates crept higher. The share of applications filed to refinance an existing mortgage totaled 78%, down slightly from the prior week's 79%. Adjustable-rate mortgages, or ARMS, made up 3.7% of total activity. The average rate on 30-year fixed rate mortgages with conforming loan balances rose to 3.73% from 3.67% in the prior week. Rates on similar mortgages with jumbo loan balances edged up to 3.96% from the previous week's 3.95%. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration, or FHA, increased to 3.53% from 3.48% in the previous week. The average rate for 15-year fixed rate mortgages edged up to 3% from 2.95% in the prior week. The 5/1 ARM average rate climbed to 2.72% from 2.6% a week earlier.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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