The Mortgage Bankers Association (MBA) released two notable reports this morning.
First, it noted that purchases plunged and refinances increased in the week ending this past May 14, suggesting that the housing market faces a choppier recovery without the support of the recently expired government tax credit.
“The Refinance Index increased 14.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 27.1 percent from one week earlier. This is the lowest Purchase Index observed in the survey since May of 1997.
“The refinance share of mortgage activity increased to 68.1 percent of total applications from 57.7 percent the previous week.
“The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.83 percent from 4.96 percent, with points increasing to 1.08 from 0.91 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week."
The MBA also reported that the delinquency rate for mortgage loans increased to a seasonally adjusted rate of more than 10 percent between the fourth quarter of 2009 and the first quarter of this year. The percentage of loans in the foreclosure process increased to 4.63 percent in that time, as well.
“The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 10.06 percent of all loans outstanding as of the end of the first quarter of 2010, an increase of 59 basis points from the fourth quarter of 2009, and up 94 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
“The percentage of loans in the foreclosure process at the end of the first quarter was 4.63 percent, an increase of five basis points from the fourth quarter of 2009 and 78 basis points from one year ago. This represents another record high.
“The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 9.54 percent, a decrease of 13 basis points from last quarter, but an increase of 230 basis points from the first quarter of last year.”
-- Dan Yeh
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