This blog post was written by La Shawn Skeete. La Shawn is a Summer Research Intern, and is currently studying at The University of Maryland, College Park pursuing a degree in Economics.
- Seasonally adjusted mortgage application volumes increased 3.6% from the week ending August 7th and are 20.2% higher than this time last year.
- Seasonally adjusted applications for purchase decreased over the week by 1.1% but purchase application volumes are 19.0% higher than last year.
- 30-year FRM rates decreased 2 basis points to 4.11% and are less than they were in 2014 by 18 basis points.
- In the 2nd quarter of this year, 29% of purchase contracts experienced delays due to financing issues, appraisal disagreements, deed problems, homeowner association complications or cold feet among other issues. The implementation of the TRID guidelines on October 3rd is yet another factor that could delay loan closings.
- The FHA announced its implementation of the “Blueprint for Access” which uses a new “Supplemental Performance Metric” to review a lender’s performance. The resultant insight is expected to “serve eligible underserved borrowers” by expanding credit access from lenders.
- Vacation home sales have increased 57% since 2013 likely due to increased consumer confidence in the housing market and an expected rise in interest rates from the Federal Reserve.
Mortgage application data serve as an indicator to homes sales and other home related expenditures such as appliances and furniture.