Mortgage applications increased 13.9% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Sep. 18, 2015.
The previous week’s results included an adjustment for the Labor Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 13.9% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26% compared with the previous week. The Refinance Index increased 18% from the previous week. The seasonally adjusted Purchase Index increased 9% from one week earlier to its highest level since June 2015. The unadjusted Purchase Index increased 20% compared with the previous week and was 27% higher than the same week one year ago.
“We saw significant rate volatility last week surrounding the FOMC meeting, and rate declines toward the end of the week likely drove applications from both prospective home buyers and borrowers looking to refinance. The 30-year fixed rate remained unchanged over the week even though there was substantial intra-week fluctuation, but we saw rate decreases in other loan products like the 15-year fixed, 5/1 ARM, and 30-year jumbo,” said Mike Fratantoni, MBA’s Chief Economist.
The refinance share of mortgage activity increased to 58.4% of total applications from 56.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.9% of total applications.
The FHA share of total applications decreased to 12.9% from 14.2% the week prior. The VA share of total applications decreased to 10.0% from 10.7% the week prior. The USDA share of total applications decreased to 0.7% from 0.8% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.09%, with points increasing to 0.45 from 0.42 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.99%, its lowest level since May 2015, from 4.04%, with points increasing to 0.36 from 0.26 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.88%, with points decreasing to 0.33 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
read more: http://www.housingwire.com/articles/35130-mortgage-apps-skyrocket-on-lower-interest-rates
Thursday, September 24, 2015
Wednesday, September 16, 2015
Phoenix homeowners rank above average for underwater mortgages, Zillow report says
s underwater mortgages continue to drop nationally, many Phoenix homeowners still grapple with negative equity, according to a report released this month by Zillow Inc.
The report indicated 18 percent of Phoenix homeowners had underwater mortgages ¬¬– when homeowners owe more than their house is worth– in the second quarter of 2015.
Although negative equity decreased from 22 percent since last year, Phoenix ranks sixth out of the 35 metro areas surveyed for the highest number of homeowners with negative equity, trailing behind Las Vegas, Atlanta and Chicago.
“Phoenix was definitely one of the hardest-hit markets during the housing bust,” said Svenja Gudell, Zillow’s chief economist.
Phoenix condo owners are experiencing a higher rate of negative equity than single-family homeowners.
About 26 percent of Phoenix condo owners are underwater on their mortgages, also above Zillow’s national average of 20 percent.
Because condos took a much harder nosedive after the Great Recession, it’s taking longer for values to rebound, Gudell said.
“If we go back to the high point of the underwater time period, there were just a ton of $20,000 to $30,000 to $40,000 condos being sold,” said Jim Sexton, president of the Arizona Association of Realtors. “We don’t have those any more. Our prices have improved in some areas significantly.”
Zillow splits data into three tiers based on estimated home values.
The bottom tier of homes, which includes low-end or “starter” residences, are more likely to have negative equity. However, these low-end homes are appreciating in value and are fueling the national decline in underwater mortgages.
Nationally, underwater mortgages dropped to 14.4 percent – the first time it’s been below 15 percent since the housing bubble burst, according to Zillow, a real-estate database company.
read more: https://cronkitenews.azpbs.org/2015/09/14/phoenix-homeowners-rank-above-average-for-underwater-mortgages-zillow-report-says/
The report indicated 18 percent of Phoenix homeowners had underwater mortgages ¬¬– when homeowners owe more than their house is worth– in the second quarter of 2015.
Although negative equity decreased from 22 percent since last year, Phoenix ranks sixth out of the 35 metro areas surveyed for the highest number of homeowners with negative equity, trailing behind Las Vegas, Atlanta and Chicago.
“Phoenix was definitely one of the hardest-hit markets during the housing bust,” said Svenja Gudell, Zillow’s chief economist.
Phoenix condo owners are experiencing a higher rate of negative equity than single-family homeowners.
About 26 percent of Phoenix condo owners are underwater on their mortgages, also above Zillow’s national average of 20 percent.
Because condos took a much harder nosedive after the Great Recession, it’s taking longer for values to rebound, Gudell said.
“If we go back to the high point of the underwater time period, there were just a ton of $20,000 to $30,000 to $40,000 condos being sold,” said Jim Sexton, president of the Arizona Association of Realtors. “We don’t have those any more. Our prices have improved in some areas significantly.”
Zillow splits data into three tiers based on estimated home values.
The bottom tier of homes, which includes low-end or “starter” residences, are more likely to have negative equity. However, these low-end homes are appreciating in value and are fueling the national decline in underwater mortgages.
Nationally, underwater mortgages dropped to 14.4 percent – the first time it’s been below 15 percent since the housing bubble burst, according to Zillow, a real-estate database company.
read more: https://cronkitenews.azpbs.org/2015/09/14/phoenix-homeowners-rank-above-average-for-underwater-mortgages-zillow-report-says/
Saturday, September 5, 2015
Fewer Chicagoans underwater on mortgages
Fewer Chicagoans are underwater on their mortgages these days, but local homeowners — particularly those with condominiums — are in worse shape than borrowers elsewhere in the country.
In its second-quarter report on negative equity, Zillow found that 14.4 percent of homeowners nationally were underwater on their mortgages, meaning they owed more on their loans than their homes were worth. That's the first time the level has been below 15 percent since the real estate bubble burst in 2008.
In the Chicago area, however, the negative equity rate fell, but it remained much higher than elsewhere. It was 22 percent in the second quarter, down from 23.7 percent earlier in the year and from 26.8 percent a year ago.
Underwater homeowners have proven to be one of the impediments to a speedier recovery of the housing market, as homeowners couldn't sell properties bought during headier times for the sums necessary to get them out from under crushing debt burdens. If they sought to sell them for less than the loan amount due, in what's called a short sale, they were at the mercy of lenders.
In turn, that kept down the inventory of homes made available for sale, creating a seller's market for desirable properties. Only in the past year or so have property values in the Chicago area risen, making it easier for more once-underwater homeowners to at least come close to breaking even, and making it easier for them to consider putting their homes on the market.
Still, among the nation's biggest housing markets, Chicago, Las Vegas and Atlanta have the highest rates of homeowners with underwater mortgages.
The range is large, however, depending on whether one owns a condo or a house, Zillow found.
Nearly a third of condos in the Chicago area were underwater, compared with 19.2 percent of single-family homes. Condo owners were also in far worse shape in Orlando and Las Vegas.
Among all homes in the Chicago area, ZIP codes with the largest year-over-year improvements in the percentage of underwater mortgages included 60537, Millington; and 60545, near Plano. Both communities are southwest of Aurora. The percentage of underwater homeowners in 60537, for example, went to 22.7 percent of homes with a mortgage, from 40.4 percent a year ago.
read more at: http://www.chicagotribune.com/business/ct-chicago-negative-equity-0907-biz-20150904-story.html
In its second-quarter report on negative equity, Zillow found that 14.4 percent of homeowners nationally were underwater on their mortgages, meaning they owed more on their loans than their homes were worth. That's the first time the level has been below 15 percent since the real estate bubble burst in 2008.
In the Chicago area, however, the negative equity rate fell, but it remained much higher than elsewhere. It was 22 percent in the second quarter, down from 23.7 percent earlier in the year and from 26.8 percent a year ago.
Underwater homeowners have proven to be one of the impediments to a speedier recovery of the housing market, as homeowners couldn't sell properties bought during headier times for the sums necessary to get them out from under crushing debt burdens. If they sought to sell them for less than the loan amount due, in what's called a short sale, they were at the mercy of lenders.
In turn, that kept down the inventory of homes made available for sale, creating a seller's market for desirable properties. Only in the past year or so have property values in the Chicago area risen, making it easier for more once-underwater homeowners to at least come close to breaking even, and making it easier for them to consider putting their homes on the market.
Still, among the nation's biggest housing markets, Chicago, Las Vegas and Atlanta have the highest rates of homeowners with underwater mortgages.
The range is large, however, depending on whether one owns a condo or a house, Zillow found.
Nearly a third of condos in the Chicago area were underwater, compared with 19.2 percent of single-family homes. Condo owners were also in far worse shape in Orlando and Las Vegas.
Among all homes in the Chicago area, ZIP codes with the largest year-over-year improvements in the percentage of underwater mortgages included 60537, Millington; and 60545, near Plano. Both communities are southwest of Aurora. The percentage of underwater homeowners in 60537, for example, went to 22.7 percent of homes with a mortgage, from 40.4 percent a year ago.
read more at: http://www.chicagotribune.com/business/ct-chicago-negative-equity-0907-biz-20150904-story.html
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