MBA Mortgage Applications 4-24-13
TRADEX
GLOBAL INTERNAL COMMENTARY
US
mortgage applications were up 1% in the latest week. The Re-finance index was
up slightly, 0.3% from the prior week.
The purchasing index (new mortgages) was at its highest level
since May 2010. The share of
applications to refinance an existing mortgage stayed unchanged at 75% and the
share of HARP increased 1% to 32%, the highest level since MBA has tracked
HARP. Mortgage rates were a touch lower
with conforming rates at 3.65% from 3.67% the prior week. Our take here is the same as the last few months:
the percentage of applications to refinance has been averaging 75% from a high
of 90%, which clearly shows new mortgages are starting to gain momentum. We still see re-fi’s at elevated levels and
HARP programs are still working to get consumers lower mortgage rates. It is also showing that the speeds of re-fi’s
are slowing as guarantee fees are rising and a good amount of borrowers have
already refinanced in the “interest rate sensitive” pools. We are convinced, and the MBA data agrees,
that we are close to the end of the greatest re-fi wave in history and that our
IO’s will appreciate greatly, and while we wait we still get a very decent
hedged return. Stay tuned, we are very
excited about our portfolio. Keep nimble
– Michael Beattie
EXTERNAL RESEARCH COMMENTARY
The total number of mortgage applications filed in the U.S. last week rose 1% from the prior week as several mortgage rates crept lower, the Mortgage Bankers Association said Wednesday. The market composite index increased 0.2% on a seasonally adjusted basis for the week ended April 19 from the prior week, according to MBA's weekly survey, which covers more than three-quarters of all U.S. residential-mortgage applications. The refinance index edged up 0.3%. On a seasonally adjusted basis, the purchasing index was up 0.3% from the prior week, marking its highest level since May 2010. Low interest rates have attracted new buyers and persuaded many homeowners to refinance their mortgages. However, tightened credit restrictions still bar many borrowers from filing loan applications. The share of applications filed to refinance an existing mortgage was unchanged from the prior week at 75%. Adjustable-rate mortgages, or ARMs, decreased to 4% of total activity from 5% a week earlier. The Home Affordable Refinance Program share of refinance applications increased to 32% from 31% a week earlier, the highest level since MBA began tracking HARP applications in February 2012. The average rate on 30-year fixed-rate mortgages with conforming loan balances slipped to 3.65% from 3.67% in the prior week. Rates on similar mortgages with jumbo-loan balances edged down to 3.75% from the previous week's 3.77%. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration was unchanged from the prior week's 3.37%. The average rate for 15-year fixed-rate mortgages decreased to 2.89% from 2.91% a week earlier. The 5/1 ARM average rate, meanwhile, rose to 2.62% from 2.57% a week earlier.
The total number of mortgage applications filed in the U.S. last week rose 1% from the prior week as several mortgage rates crept lower, the Mortgage Bankers Association said Wednesday. The market composite index increased 0.2% on a seasonally adjusted basis for the week ended April 19 from the prior week, according to MBA's weekly survey, which covers more than three-quarters of all U.S. residential-mortgage applications. The refinance index edged up 0.3%. On a seasonally adjusted basis, the purchasing index was up 0.3% from the prior week, marking its highest level since May 2010. Low interest rates have attracted new buyers and persuaded many homeowners to refinance their mortgages. However, tightened credit restrictions still bar many borrowers from filing loan applications. The share of applications filed to refinance an existing mortgage was unchanged from the prior week at 75%. Adjustable-rate mortgages, or ARMs, decreased to 4% of total activity from 5% a week earlier. The Home Affordable Refinance Program share of refinance applications increased to 32% from 31% a week earlier, the highest level since MBA began tracking HARP applications in February 2012. The average rate on 30-year fixed-rate mortgages with conforming loan balances slipped to 3.65% from 3.67% in the prior week. Rates on similar mortgages with jumbo-loan balances edged down to 3.75% from the previous week's 3.77%. The average rate on 30-year fixed-rate mortgages backed by the Federal Housing Administration was unchanged from the prior week's 3.37%. The average rate for 15-year fixed-rate mortgages decreased to 2.89% from 2.91% a week earlier. The 5/1 ARM average rate, meanwhile, rose to 2.62% from 2.57% a week earlier.
Tradex Global Advisory Services, LLC
investorrelations@thetradexgroup.com
203-863-1500
@Tradex_Global
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