Mortgage Purchase Applications Back To 1998 Levels As Mortgage Refi Applications Slow A Bit From Refi Wave

If you have recently applied for a mortgage refinancing given plunging mortgage rates, you may have noticed a delay in the underwriting. Why? US lenders are in the midst of a “refi wave” and some lenders are swamped with work, particularly underwriters.

Mortgage applications decreased 6.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 23, 2019.

The Refinance Index decreased 8 percent from the previous week and was 167 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 2 percent higher than the same week one year ago.

mbaststste

The 30 year mortgage rate has been generally falling since November 2018 as European (Brexit) and Asian (China trade) pressures have increased. As a consequence, we have seen a “refi wave” in 2019.

mortgrefi.png

Mortgage purchase applications have risen gradually since 2014, but litigation against lenders and rules created under the Consumer Financial Protection Bureau (CFPB) resulted in mortgage purchase applications at 1998 levels.

subprimeswoon

A refi wave can feel like surfing at Nazare in Portugal.

naxzare

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.