Mortgage Refinancing Hits 18-Year Low

Aug 08, 2018

The national median existing single-family home price in the third quarter was $266,900, up 4.8 percent from $254,7000 in the third quarter of 2017, according to new data from the National Association of Realtors (NAR)

Refinancing activity plummeted to an 18-year low, according to Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending Aug. 3.

The Market Composite Index decreased by three percent on both a seasonally adjusted and unadjusted basis from one week earlier—the seasonally adjusted index reached its lowest level since January 2016. Both the seasonally adjusted and unadjusted Purchase Index decreased two percent from one week earlier, with the latter being two percent lower than the same week one year ago.

But the dramatic numbers were on the refi side of the business: The refinance share of mortgage activity decreased to 36.6 percent of total applications from 37.1 percent the previous week and the Refinance Index fell by five percent from the previous week to plumb its lowest level since December 2000.

Among the federal programs, the FHA share of total applications remained unchanged at 10.4 percent from the week prior while the VA share of total applications increased to 10.6 percent from 10.5 percent and the USDA share of total applications remained unchanged at 0.8 percent.

About the author

Phil Hall

Link copied

Published

Aug 08, 2018

Construction

Home Builders Follow Buyers Out Of Big Cities

Construction spending rose in October, with more new homes in lower-density areas

Home builders are expanding their outreach into lower density areas of the country, where the demand for more affordable housing has grown in recent years, and local zoning laws are less restrictive. The National Association of Home Builders (NAHB) just released its Home ...

Industry News

First FICO 10T-Backed MBS Issuance Achieved

Comprised of VA loans, the pool offers proof of concept for changes to be required by the FHFA by late 2025.

Fannie-Freddie seller and servicer Cardinal Financial has originated its first VA loans decisioned with the help of FICO’s 10 T credit score, following early adoption of this new credit score ahead of the transition required by the Federal Housing Finance Agency (FHFA) in la...