Mortgage applications and refinance applications increased during the week ending Dec. 11, 2020, according to the Mortgage Bankers Association’s weekly survey Mortgage applications increased 1.1 percent week over week during the week ending Dec. 11, 2020, according to the Mortgage Bankers Association.
The market composite index, which calculates the volume of mortgage loan applications increased 1.1 percent from the previous week on a seasonally adjusted basis The index increased 0.4 percent from the week before on an un-adjusted basis.
The refinance index rose week by week by 1 percent and year by year by 105 percent. A great deal of tricky marketing strategies, saying “Government is giving away free money in Florida” misleading qualified mortgage holders to explore options! Meanwhile, on a seasonally adjusted basis, the purchase index increased 2 percent week over week. However the un-adjusted purchase index decreased 2% from the week before, but it was still up 26% year on year.
In a press release, Joel Kan, MBA’s associate vice president of economic and business forecasting, explained how during the week’s survey, dropping mortgage rates continued to have a positive effect on mortgage applications!
U.S.— Treasury rates stayed stable last week, mainly due to uncertainty about the prospects of additional government pandemic-related stimulus, as well as concern about the sharp rise in national COVID-19 incidents, Kan said. As a result, mortgage rates dropped to another survey low, with the 30-year fixed mortgage rate declining to 2.85 percent by five basis points. Once again, homeowners reacted to the fall in prices, with refinancing activity growing for the second straight week and up 105 percent for the second straight week.
Kan said in a statement, “The ongoing strength in the housing market has spread into December.” In five weeks, applications for purchasing a home increased for the fourth time, as both conventional and government target markets saw gains. Government purchase applications rose to the highest level since June for the sixth straight week, perhaps a sign that more first-time buyers are exploring the market.
The percentage of refinance applications also subsequently increased, from 72.0 percent on a weekly basis.The average contract interest rate reached a survey low of 2.85 percent on 30-year fixed-rate mortgages with conforming loan balances, down from 2.90 percent the previous week. For 80 per cent loan-to-value ratio (LTV) loans, points have decreased to 0.33 from 0.35. 30-year fixed-rate mortgages backed by the FHA also saw a drop in the average contract interest rate from 2.97% the previous week to a new survey low of 2.96%. For LTV loans of 80 percent, points grew from 0.40 to 0.42.
The average contract interest rate also touched a survey low of 2.49 percent on 15-year fixed-rate mortgages, down from 2.51 percent the previous week. For 80 percent of LTV loans, points declined from 0.35 to 0.29.