Mortgage Applications Surge On Refinancing Demand As Rates Drop

Applications for U.S. home mortgages surged last week, driven by increased refinancing demand as interest rates dropped, an industry group said on Wednesday.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, climbed 10.3 percent in the week ended Nov 4.

"Treasury rates dropped last week, as renewed turmoil in Europe once again led to a flight to quality, and 30-year mortgage rates dropped to their second lowest level of the year," Mike Fratantoni, MBA's vice president of research and economics, said in a statement.

The MBA's seasonally adjusted index of refinancing applications rose 12.1 percent to its highest level in a month. Fratantoni said some lenders saw even bigger increases. Fixed 30-year mortgage rates dropped 9 basis points to average 4.22 percent.

The refinance share of total mortgage activity rose, after declining for three weeks, to 78.6 percent of applications from 77.1 percent the week before.

The gauge of loan requests for home purchases gained 4.8 percent.

The survey covers over 75 percent of U.S. retail residential mortgage applications, according to MBA.

(Reporting by Leah Schnurr; Editing by Leslie Adler)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[Konnie]

11:10 PM on 11/10/2011

anyone got any ideas how to get Citi bank to move on a mortgage refi? applied in august.............great credit, house appraised $45 grand over loan amt. can't get anyone to return calls regarding status, much less set a closing date. latest try was phone mail with threat to complain to state fdic which i know means nothing.................help - any suggestions? this was spose to be simple, just to get x's name off loan................

[spinotter11]

08:17 AM on 11/11/2011

There really is something rotten in the housing finance industry these days. When the US Post Office can tell you in real time that your package is in your mailman's van, these obscenely-salaried bank executives can't even deliver customer information on a call-in basis? Our entire top layer (1% and minions) is rotten, and its rotting our whole society.

[CPAwADD]

11:53 AM on 11/10/2011

If you haven't refinanced in the past few years you should look into it. It can be very easy.

[authorized-user]

09:42 PM on 11/09/2011

Applications for U.S. home mortgages surged last week,

BIG DEAL, how mortgages are awarded?

[Kenz300]

09:05 PM on 11/09/2011

If you have a mortgage you need to know the interest rate you are paying.

Mortgage rates are as low as they have been in decades. If you can refinance and get a lower rate you will shave dollars off your monthly payment.

If you are planning on staying in your home it is worth the effort to cut your monthly payments.

If you have been in your home for many years consider refinancing. Why pay more in interest than you have to?

[ReaItors Are Liars]

10:10 PM on 11/09/2011

Mortgage rates will be lower 6 months from now... a year from now. Two years from now.

[CPAwADD]

11:49 AM on 11/10/2011

You may be right. You may not be right. In my opinion future interest rates are unknowable.

[planetjeffy]

07:32 PM on 11/09/2011

Hopefully this will help lead to a good holiday season for the retailers and start a nice uptick in the economy for 012.

[inthedesert]

07:09 PM on 11/09/2011

Remember a couple of weeks ago, if that, when the Stock Market shot up and everyone was saying the worst was over? LOL. Sorry, the fat lady hasn't sung yet.

[CPAwADD]

11:51 AM on 11/10/2011

No one knows.
Predictions are hard, especially about the future. - Yogi Berra

[spinotter11]

08:19 AM on 11/11/2011

Gentle sarcasm which is the best kind. Fanned.

[ReaItors Are Liars]

03:16 PM on 11/09/2011

Folks,

Banks and ReaItors WANT you to continue to stay in your house so they can;

-Extend the length of your mortage term putting you much DEEPER in debt

-Keep housing prices grossly inflated.

Banks and reaItors are colluding to bleed you all dry. WALK away from the house and buy a duplicate house for 50% less.

If you stay and continue to pay grossly inflated mortgage installmen­­­­­­ts on a rapidly depreciati­­­­­­ng house, you will never recover financiall­­­­­­y.

[frank day]

04:05 PM on 11/09/2011

Folks! Realtors Are Liars is a bank representative who wants Granny's house foreclosed on.

[ReaItors Are Liars]

07:09 PM on 11/09/2011

Folks! FrankDayTheReaItor is a perfect example of the ReaItor/Banker collusion. He wants you to continue making grossly inflated payments on a rapidly depreciating house.

[MSROADKILL612]

08:14 PM on 11/09/2011

Frank - pls dont encourage RAL - he has major issues, IQ first & foremost & should be ignored

a hopefully sensible issue is yes - there is plenty of supply - but it is valueless, inappropriate supply - detroit, fla, uncommutable re lo wages tract housing

all v well to quote supply, but its unviable housing

US need to contract its cities - more doubling up in areas w/ affordable transport

[ehorth]

05:54 PM on 11/09/2011

"WALK away from the house and buy a duplicate house for 50% less."

Really? And just how do you purchase that other house if your credit is in the "toilet" because you walked away? I think your advice is disingenuous.

[ReaItors Are Liars]

07:09 PM on 11/09/2011

*Use your head*

Buy the second house before walking away from the first.

Catching on now?

[frank day]

07:12 PM on 11/09/2011

He doesn't understand big words.

He barely reads or writes.

[Kenz300]

02:45 PM on 11/09/2011

I wonder how many people do not actually know what their current mortgage rate is and what their payment could be reduce by if they refinanced. Financial literacy in this country needs to be improved. If you can refinance at a lower rate go do it and lower your payments.

[Kenz300]

02:45 PM on 11/09/2011

More people need to go and refinance their mortgage to a lower rate.

This will reduce their monthly payments and free up cash for other things.

[cadawa]

01:51 PM on 11/09/2011

Here that huffing and puffing? It's the Fed, the banksters and the realtors trying to reinflate the housing bubble. Homes are selling like hotcakes in my neighborhood are foolish people are buying overpriced homes like they were crackerjack.
There are millions of homes (more than the existing housing market) in a shadow real estate market, held back by banks at pre crash prices, that are going to have be released in this coming year. http://www.progressivenewsdaily.com/?p=21373
Housing prices are going to fall again, big time.

[frank day]

02:36 PM on 11/09/2011

I disagree. In face, we will face a housing shortfall 3-5 years out.

Oh well, we can touch bases in a year and see who was right !!!

[ReaItors Are Liars]

03:07 PM on 11/09/2011

"Housing shortfall"?

There are 25 MILLION excess empty housing units in the US today.

[DebtNavigation]

01:40 PM on 11/09/2011

Refinancings are nearly the only game left in town, as 50%+ of the homes in the U.S. are underwater when the costs of a transaction are taken into account. That means that only half the homeowners could move even if they wanted to. What happens when everyone who can refinance has refinanced and the economy hasn't improved and more people are out of work? Wall Street will keep coming up with ways to skim off the real economy.

In Mexico in the mid-'90s Wall Street engineered a currency coup that tripled the debt owed by small businesses and family farms and also allowed for them to be massively ratejacked on top of it. Mexicans consequent­ly formed the "el Barzon" movement and pushed back Wall Street and deposed their ruling party of 60+ years. In this country YouTube phenom Ann Minch declared the debtors' revolt and began going after them, with others joining in.

If you've been pushed under, you can read every other page of my book for free: http://www­.scribd.co­m/doc/2544­3175/Debt-­Hope-Down-­and-Dirty-­Survival-S­trategies-­Evaluation­-Version-C­omplete

[FormerlyTCnSRQ]

01:04 PM on 11/09/2011

the banks won't refinance with most people...the restrictions are almost impossible to overcome for a majority of home owners...even for the ones that can afford them....most of these home are worth less than half they were when purchased

[Ed Baker]

01:09 PM on 11/09/2011

Sorry, that's incorrect. Lending standards are not tight at all.

You can refinance up to 125% loan to value. FHA loans 97.5% loan to value... with a 600 FICO score, and 55% debt to income ratio.

If your credit score is below 600 - you've tried hard to get it that low.

[FormerlyTCnSRQ]

01:34 PM on 11/09/2011

really?...that's news considering the banks are asking for 2 years full employment which many who are trying to desperaately refinance can't....and they don't care if you can cover the mortgage with cash in savings...they know full well that people have moved money into retirement accounts that the ycan't touch...the banks won't take or make the deal.

[Tarpon22]

11:35 AM on 11/09/2011

This article is False.
More people are losing their homes than buying or refinancing COMBINED.

Home prices are going to keep dropping for years.

People are protesting the FRAUD Nation Wide in every City.
The Media has been instructed not to show it on TV.

OccupytheMedia
Occupywalstreet, Oakland, Dallas,Chitown,Portland,Houston,KC,Detriot and the list is NATION WIDE

WE ARE THE 99% and we are taking our Country Back.

[rondohatton2012]

11:55 AM on 11/09/2011

No, you are about the 13% and you have little support from the rest of us.

[ReaItors Are Liars]

12:16 PM on 11/09/2011

WRONG.

Tarpon is the 99%. And he's precisely right.

[Ed Baker]

01:10 PM on 11/09/2011

Most people are making their mortgage payments on time in the amount agreed - over 90%.

So you're the 10% - not the 99%.

[ReaItors Are Liars]

01:48 PM on 11/09/2011

WRONG.

The truth is the default rate is currently 300% greater than historic trend.

You Housing Crime Syndicate operators need to start get honest with the public about the market. Or we're going to do it for you.

[fortressfountain]

11:01 AM on 11/09/2011

I agree, why buy a house when the prices will continue to go down. The Mcjobs the politicans expect people to take to bring down the unemployment numbers and to help the stock market-will fail to generate enough income for people to buy homes.
In addition-the state taxes and property taxes will escalate as the local politicans will recieve less in tax revenue.
I heard a rumor from some of my agriculture neighbors the counties and states are looking to lease property for solar and water projects. My guess is the state and local govs will be taking over everyone's land and water rights-so when you attempt to sell the home the home will be worth zip.
Humm, what will they not think of to screw over the american public.

[rondohatton2012]

11:56 AM on 11/09/2011

Prices will drop another 20-30% before it's all over.
Many people will not qualify for refinancing due to their payment history.

[inthedesert]

07:07 PM on 11/09/2011

Plus they are unemployed and their benefits have run out...can't buy a home without income.....

[pompous]

10:52 AM on 11/09/2011

"home mortgages surged last week, driven by increased refinancing demand as interest rates dropped,"

Refinance on an already existing mortgage is the driver but is dependant on whether a homeowner has enough equity or cash to cover closing costs. The interest rate they receive will be dependant upon 800 or better credit score.

[rondohatton2012]

11:57 AM on 11/09/2011

Not many in that group.

[Ed Baker]

01:11 PM on 11/09/2011

A whole boat load of misinformation there..... why do you comment when you don't have requisite data?

[pompous]

06:50 PM on 11/09/2011

You would do well to read and comprehend the article. The quote provided is directly from the article and reading it tells us that mortgages increased because people are looking to refinance to a lower rate. Closing costs must be covered either through equity or cash from the homeowner and given that home values have decreased equity may not be an option for many. Many may not have cash sitting on the side to cover closing. If you don't think my boat floats maybe this will help http://www.businessinsider.com/7-reasons-why-you-cant-refinance-your-mortgage-2011-11.