Private Hard Money Lender in California, Texas and Arizona: Mortgage Rates Continue to Slide to Four Percent

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Friday, July 26, 2013

Mortgage Rates Continue to Slide to Four Percent


Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 14, 2013 reported that mortgage applications decreased 3.3 percent from just the week prior. The Market Composite Index, which is a measure of mortgage loan application volume, decreased 3.3 percent on a seasonally adjusted basis, additionally from one week earlier. When on an unadjusted basis, the Index decreased four percent when compared with the previous week. The Refinance Index decreased three percent from the previous week. Moreover, the seasonally adjusted Purchase Index decreased three percent from one week earlier and the unadjusted Purchase Index decreased four percent compared with the previous week and was 12 percent higher than the same week one year ago.
That’s a lot to take in!
Meanwhile, the refinance share of mortgage activity was unchanged and stayed at 69 percent of total applications from the previous week. The adjustable-rate mortgage, or ARM, share of activity was also unchanged and stayed at seven percent of total applications. For the past two week, the government share of purchase applications has been at 29 percent.
For a 30-year fixed-rate mortgage with conforming loan balances of $417,500 or less, the average contract rate increased to 4.17 percent from 4.15 percent, which is the highest it has been since March 2012.
For a 30-year fixed-rate mortgage with jumbo loan balances of $417,500 or more, the average contract rate decreased to 4.23 percent from 4.25 percent, with points increasing to 0.34 from 0.32 (including the origination fee) for 80 percent LTV loans.
However, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.85 percent, the highest rate since April 2012, from 3.81 percent, with points decreasing to 0.22 from 0.26 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.30 percent from 3.32 percent, with points increasing to 0.39 from 0.38 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 2.81 percent, the highest rate since June 2012, from 2.78 percent, with points increasing to 0.35 from 0.30 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.

Arizona Hard Money

Level 4 Funding LLC

23335 N 18th Drive Suite 120

Phoenix AZ 85027

623-582-4444