By rob.briggs@nafinc.com
September 24, 2015
The Mortgage Bankers Association released its weekly survey on July 8. The results showed mortgage applications increased for the week ending July 3.
Applications for Home Loans Jump
The number of individuals who decided to apply for a home loan rose 4.6 percent when compared on a week-over-week basis. This increase was also adjusted for the July 4 holiday.
On an unadjusted basis, applications increased 6 percent from the previous week.
When compared to the same time one year ago, the total number of applications jumped 32 percent. While applications saw an increase, refinancing activity decreased to 48 percent of all mortgage applications. This is the lowest level seen since June 2009 when it comes to refinance activity.
The rise in total applications likely occurred due to more favorable economic conditions in the U.S. as well as lower interest rates for home loans.
Greece Pushes Mortgage Rates Lower
According to Zillow, an online real estate company, the average 30-year fixed-rate mortgages decreased 5 basis points on a week-over-week basis. just prior to the decrease rates rose to match the stronger economic conditions in the u.s.
"Mortgage rates jumped last Wednesday after Greece defaulted on its international debts, then fell early this week due to continued Greek instability, turmoil in Chinese stock markets, and unexpectedly strong global oil supplies," noted Erin Lantz, vice president of mortgages at Zillow. "Uncertainty over Greece's future will continue to dominate headlines this week, but economic news elsewhere suggests interest rates will remain lower for longer."
The foreign economic condition's impact on mortgage rates stimulated a higher number of individuals to apply for home loans. In doing so, these prospective buyers will help continue to strengthen the U.S. housing market and help bolster the current conditions.