Skip to main content

Mortgage Rates and Credit Availability Fall

Phil Hall
Jan 10, 2019
The Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 3, 2020 has found that mortgage applications decreased 17.9 percent from one week earlier

Mortgage rates and mortgage credit availability took respective tumble in the latest data reports.
 
As reported by Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 4.45 percent for the week ending Jan. 10, down from last week when it averaged 4.51 percent. The 15-year FRM this week averaged 3.89 percent, down from last week when it averaged 3.99 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.83 percent, down from last week when it averaged 3.98 percent.
 
However, Sam Khater, Freddie Mac’s Chief Economist, saw the bright side in this data picture.
 
“Mortgage rates fell to the lowest level in nine months, and in response, mortgage applications jumped more than 20 percent,” Khater said. “Lower mortgage rates combined with continued income growth and lower energy prices are all positive indicators for consumers that should lead to a firming of home sales.”
As reported by Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 4.45 percent for the week ending Jan. 10
 
Separately, the Mortgage Bankers Association (MBA) reported that its Mortgage Credit Availability Index (MCAI) fell by 7.3 percent to 175 in December, its lowest level since February 2017. The Conventional MCAI dropped by 14.5 percent, the Jumbo MCAI slipped by 14.9 percent and the Conforming MCAI took a 14 percent drop, while the Government MCAI eked out a scant 0.1 percent uptick.
 
"The decline was driven by a sharp decrease in the conventional credit space, as we saw expiration of the Home Affordable Refinance Program," said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. "The expiration of HARP also significantly impacted the availability of credit for both conforming non-jumbo and jumbo loans."
Separately, the Mortgage Bankers Association (MBA) reported that its Mortgage Credit Availability Index (MCAI) fell by 7.3 percent to 175 in December

 
Published
Jan 10, 2019
CFPB Issues Guidance On AI In Credit Underwriting

Creditors must provide specific and accurate reasons for credit denials, even with complex AI models.

Sep 19, 2023
Intercontinental Exchange Completes Black Knight Acquisition; Births Dark Matter Technologies Under Constellation Software

Rich Gagliano takes the helm at Dark Matter Technologies, poised to lead the future of Empower LOS with a 1,300-strong team, blending startup agility with decades of industry experience.

Sep 18, 2023
FHFA Invites Public Engagement On Modernized Credit Score Transition

Stakeholder forums and listening sessions planned to ensure seamless rollout; extended timeline for bi-merge credit report requirement in play.

Sep 11, 2023
Desperation Drives Difficulty in Closing Mortgages in California

Analysis reveals California among top 20 toughest states for mortgage closures.

Sep 11, 2023
If You Build It, They Will Come

Ratings will go a long way toward growing the market for home equity-backed securities

Sep 07, 2023
Investors May Be Losing Interest In The Single-Family Rental Market

Rise in interest rates, drop in values have them pulling back in certain regions

Sep 07, 2023