Home loan rates highest in a year
May 29, 2013
Home loan rates have pushed up to their highest levels in a year due to better than expected economic data and fears that the U.S. Federal Reserve may pull back on its stimulus program that was put in place to promote jobs and speed up the economic recovery. The Mortgage Bankers Association reported today that its Market Composite Index, a measure of loan application volume, fell nearly 9% in the latest week and has declined three weeks in a row. The refi index fell 12% while the purchase index increased by 3%.
Over on the foreclosure front, CoreLogic reports that completed foreclosures in April amounted to 52,000, which is a 16% decline from the 62,000 that were completed in April of 2012. From March to April foreclosures were flat. By comparison, between the 2000 and 2006, completed foreclosures averaged 21,000 per month across the nation. Since September of 2008 there have been 4.4 million completed foreclosures.
Lender Processing Services, a leading provider of integrated technology, data and analytics to the mortgage and real estate industries, reported yesterday that home prices rose 1.4% from February to March and were up 7.6% year-over-year from March 2012 to March 2013. The average home price was $213,000 in March, up almost 3% from the beginning of the year.