Tag Archives: Mortgage Bankers Association

US Mortgage Purchase Applications at 15-Year Low


This is not surprising news, and I don’t find it too alarming at this point.  We have had a turbulent couple weeks in the stock market bring uncertainty to many households.   We are back to 1996 levels on mortgage applications.  What is surprising is that it is the complete opposite of record low interest rates….  which puts into perspective the extent of the uncertainty out there…

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, fell 2.4 percent in the week ended Aug.19.

The seasonally adjusted gauge of loan requests for home purchases tumbled 5.7 percent to its lowest level since December 1996, the MBA said.

“This decline impacted borrowers across the board, with purchase applications for jumbo loans falling by more than 15 percent and purchase applications for the government housing programs falling by 8.2 percent.” The refinance share of mortgage activity increased to 79.8 percent of total applications from 78.8 percent the week before.

Fixed 30-year mortgage rates averaged 4.39 percent, up from 4.32 percent.

Full Story from CNBC

Calculated Risk is great at graphing this information.  Once again another great chart from Calculated Risk showing the mortgage applications:

Mortgage Applications Aug 24 2011 CalculatedRiskBlog

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Delinquencies Rise, Foreclosures Fall in Latest MBA Mortgage Delinquency Survey


Delinquencies Rise, Foreclosures Fall in Latest MBA Mortgage Delinquency Survey. Mortgage Bankers Association

This is troubling news.  We were seeing a trend of delinquencies and foreclosures falling, now this report is showing a reversal of that trend.  I guess we are not out of the woods yet… This is probably reflective of the unemployment rate inching up again.  Jobs, Jobs, Jobs is what the housing market needs…

Calculatedriskblog.com chart

From Calculatedriskblog.com: This graph shows the percent of loans delinquent by days past due.

Loans 30 days delinquent increased to 3.46% from 3.35% in Q1. This is probably related to the increase in the unemployment rate.

Delinquent loans in the 60 day bucket increased slightly to 1.37% from 1.35%.

There was a slight decrease in the 90+ day delinquent bucket. This decreased to 3.61% from 3.65% in Q1 2011.

The percent of loans in the foreclosure process decreased to 4.43%.

So short term delinquencies ticked up, and the 90+ day and in-foreclosure rates declined. I’ll have more later after the conference call this morning.

(From MBAA Press Release) WASHINGTON, D.C. (August 22, 2011)  — The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 8.44 percent of all loans outstanding as of the end of the second quarter of 2011, an increase of 12 basis points from the first quarter of 2011, and a decrease of 141 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 32 basis points to 8.11 percent this quarter from 7.79 percent last quarter.

“While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped.  Mortgage delinquencies are no longer improving and are now showing some signs of worsening,” said Jay Brinkmann, MBA’s Chief Economist. “The good news is the continued decline in long-term delinquencies, those mortgages that are three payments or more past due. The bad news is that drop is offset by an increase in newly delinquent loans one payment past due.”

UPDATED:  Hats off the calculated risk blog.  They keep coming up with great statistics.  For more charts like the one below, check out their updated post.   Although Minnesota isn’t in the worst shape by comparison to other states, we are still in rough shape – approx 8% of first mortgages are either in foreclosure or more than 30 days delinquent.  Staggering.  That is 8% of all first mortgages in Minnesota.  (back to our new real estate motto: Jobs, Jobs, Jobs.)

 

calculatedrisk blog State delinquency by %

 

 

 

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30 Year Conventional Mortgage rate historical perpective


It seem like we always hear “near record low mortgage rates”, like another “Guitar Center blow out sale”.

This will help put things in a little perspective.  This was just updated 2011-08-11 4:31 PM CDT

30 Year Mortgage Rates 1976-05-07 to 2011-08-11

How much lower do you think they will go?

I am thinking now is a good time…
 

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