WASHINGTON, D.C. (June 24, 2015) – Mortgage applications increased 1.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 19, 2015.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.19 percent from 4.22 percent, with points decreasing to 0.38 from 0.46 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.14 percent from 4.18 percent, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.38 percent from 3.43 percent, with points increasing to 0.37 from 0.33 (including the origination fee) for 80 percent LTV loans.
Interest rates doing nicely this morning but still the 10 yr note based on our work remain in a bearish pattern.The volatility is extreme but within a wide range with no trend, the 10 yr 2.50% to 2.30%. This morning early the 10 yield dropped to 2.33% frm 2.48% on Friday; up 7 bps on Friday and down 15 bps this morning; last week the yield ncreased 22 bps, this morning half of that has been recovered. . Mortgage rates in an even tighter yield range with no significant change in rates for the last three weeks. US equity markets following the rest of the world lower this morning; Greece of course but also China’s markets continue to fall and now in bearish status.
Fed’s Dudley: September rate rise ‘very much in play’ amid stronger data
A Federal Reserve interest-rate hike will be “very much in play” at the central bank’s September meeting if the recent strengthening of the US economy continues, according to one of America’s top central bankers.
William Dudley, the president of the Reserve Bank of New York, said recent evidence of accelerating wage gains, improving incomes, and growing household spending had alleviated some of his concerns about the sustainability of momentum in America’s jobs market. read more
Housing News
Pending home sales rise 0.9% in May, highest level since 2006
A sharp jump in interest rates may have deterred some home buyers in May. Signed contracts to buy existing homes, so-called pending home sales, rose just 0.9 percent in May from April, according to the National Association of Realtors, after a downward revision to April’s reading. That is slightly lower than analysts predicted, but is still the highest level on the association’s index since April of 2006. Pending sales are now 10.4 percent higher than one year ago. Watch
Economic News
You know by now that Greece has closed its banks this week after creditors finally rejected Greek proposals.
Talk of a Greek referendum vote on whether to take creditors’ proposals or leave the EU. Europe’s stock markets under pressure, the Dow Jones opened down 151 points and there is a push into US treasuries. Tomorrow Greece will default on its payment to the IMF. Greece has destabilized Europe and global markets for months, nothing that happens there should be a surprise either way Greece may go. Concerns are that the debt crisis will spread to Portugal and Spain. The Greek referendum is scheduled for July 5th as of the moment.