US Home Mortgage Activity at 2-Month Highs as Loan Costs Fall
- Interest rates on 30-year, fixed-rate “conforming” mortgages with balances of $453,100 or less, averaged 5.08% last week,
US borrowers filed the most home mortgage applications in nearly 2 months as 30-year home loan costs fell to their lowest marks since early October, the Mortgage Bankers Association said on Wednesday.
The Washington-based group’s seasonally adjusted measures on consumer requests for a loan to buy a home and to refinance an existing one rose 2.0% to 340.5 in the week ended 30 November. This was the strongest reading since 346.7 in the week of 5 October
Interest rates on 30-year, fixed-rate “conforming” mortgages with balances of $453,100 or less, averaged 5.08% last week, which the lowest since the week of 5 October, they averaged 5.12% the prior week.
Interest rates on other types of home loans MBA tracks were mixed from the prior week.
Mortgage rates have fallen in step with lower US Treasury yields.
Treasury rates continued to declined last week, driven mainly by concerns over slowing global economic growth and US and China trade uncertainty.
On Tuesday, benchmark 10-year T-Note yield fell to 2.885%, its lowest mark since 7 September.
US financial markets closed Wednesday for a national day of mourning for former US President George W.H. Bush who died last Friday.
MBA’s seasonally adjusted measure on mortgage refinancing rose 6.2% to 836.4 last week, rising further above a near 18-year trough reached in the week of 16 November
The group’s seasonally adjusted index on loan applications to buy a home, which is seen as a proxy on future housing activity, edged up 0.8% to 249.9.
This is perhaps an indication that there are fewer jumbo borrowers, or maybe 1st-time buyers are having better success reaching the market as we close out the year.