US Mortgage Applications Rebound in Latest Week: MBA
Applications for U.S. home mortgages rose for a second straight week following three weeks of declines, data from an industry group showed on Wednesday.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, surged 15.2 percent in the week ended Jan 11.
The index of refinancing applications jumped 15.3 percent, while the seasonally adjusted purchase index increased 12.9 percent to the highest level since April 2011.
The refinance share of total mortgage activity held steady at 82 percent of applications.
Fixed 30-year mortgage rates were flat at an average 3.61 percent after rising from 3.52 percent the week before last. It was the highest level since early November.
The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.
As Northern California and Northern Nevada Mortgage originator, I can see the improvement in the market. One of my clients is trying to buy a house in Reno and he mentioned prices have risen by double digits in the last 12 months and he is buying now because of concern over further increases in home prices.
One realtor mentioned to me that several short sales have become normal sales when prices were bid up sufficiently to keep the lenders whole (and if applicable, MI companies).
Houses which were bought in the 2002 to 2004 time frame are going to start to have equity. As I recall, about 30% of MI delinquincies consist of homes financed in 2004 and prior. Increasing values could result in cures in many of these pre 2005 loans.
Thanks Morgageguy for sharing that with us. My friends told me now people are looking for housed over 500k in California and you hardly find anything below 400k . I have a few realtor friends and they all are very busy . Condos below 350k doesn't stay on the market very long and after a couple of weeks they sold. That's good news for MGIC.