Mortgage Applications Down Slightly: Mortgage Lending
In the recent press release made by the Mortgage Bankers Association (MBA), which tracks mortgage lending and the mortgage markets, mortgage applications decreased slightly by .2 percent compared to the week prior. The report goes on to state, ” On an unadjusted basis, the Index decreased 0.4 percent compared with the previous week. The Refinance Index decreased 0.3 percent from the previous week. The seasonally adjusted Purchase Index remained unchanged from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 11 percent lower than the same week one year ago. The seasonally adjusted conventional purchase index increased 1.3 percent to the highest level since July 2014″ (MBA).
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.33 percent from 4.39 percent, with points decreasing to 0.31 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.28 percent from 4.30 percent, with points decreasing to 0.15 from 0.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
This survey does not include private lending through mortgage brokers such as the specialists at HML Investments. While mortgage applications are experiencing a slight decrease, this could be a sign that borrowers are finding it more difficult to acquire funding through conventional channels of financing. More and more self employed, credit compromised, or rapid investors are turning to alternative financing products such as hard money, stated income, and other non conforming loans to finance their real estate ventures.
For more information about obtaining a mortgage loan through mortgage lending, contact the specialists at HML Investments today.