Mortgage Applications dip in latest week, Pending home sales fell
June 29, 2016
Wednesday – June 29
Despite three-year lows for mortgage rates, applications to purchase and refinance homes fell in the latest week. The Mortgage Bankers Association (MBA) reported on Wednesday that its Market Composite Index, a measure of total mortgage application volume, fell 2.6% in the latest week. However, they are up 38% from a year ago, when mortgage rates were higher. Within the report it showed that the refinancing index decreased 2%, while the purchase index fell 3%. The MBA also said that the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) dropped to its lowest level since May 2013, falling to 3.75% from 3.76% the previous week.
The National Association of REALTORS® reported on Wednesday that May Pending Home Sales fell 3.7% due in part to low inventories of homes for sale on the market. The -3.7% was less than the -.1.4% expected. From May 2015 to May 2016, Pending Home Sales are down 0.2%, the first annual loss since August 2014. Lawrence Yun, NAR chief economist, says pending sales slumped in May across most of the country. “With demand holding firm this spring and homes selling even faster than a year ago, the notable increase in closings in recent months took a dent out of what was available for sale in May and ultimately dragged down contract activity,” he said.