U.S. mortgage applications tick down as refinance activity declines -MBA By Reuters

Spread the love

© Reuters. FILE PHOTO: Real estate signs advertise new homes for sale in multiple new developments in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson/File Photo

By Evan Sully

(Reuters) – Mortgage applications decreased last week as fewer homeowners sought to refinance their loans, offsetting a modest rise in applications for loans to buy homes.

The Mortgage Bankers Association (MBA) said on Wednesday its seasonally adjusted Purchase Index decreased 4.2% in the week ended May 21 from a week earlier, reflecting a 7.2% decline in applications for refinancing.

The purchase index increased 1.7% from a week earlier.

“Demand is robust throughout the country, but homebuyers continue to be held back by the lack of homes for sale and rapidly increasing home prices,” Joel Kan, an economist at the MBA, said in a statement.

New home sales dropped 5.9% to a seasonally adjusted annual rate of 863,000 units in April as prices surged amid a tight supply of houses, the Commerce Department said on Tuesday. Last week, the National Association of Realtors reported that home resales dropped for a third straight month in April.

“Housing is booming. The sector is so strong, there simply is not enough available supply,” said Joseph Lavorgna, chief U.S. economist at Natixis CIB. “This is weighing on home sales. In turn, home prices are accelerating. Eventually, more housing will be brought to market, but it will take time.”

The average contract interest rate for traditional 30-year fixed-rate mortgages increased to 3.18% last week from 3.15% the prior week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  
  •  

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Registered For FREE Forex Training!

Fill In Your Details To Get Registered For FREE Forex Training!