Real Estate News

MBA: Second-to-last week in February ends with mortgage application spike

Published: 02 Mar 2017

The Mortgage Bankers Association regularly publishes information on mortgage applications, and the latest results of its weekly survey show an increase at the end of February. According to this source, data from late February seems to show a late turn of fortunes as the market sees a sudden increase in applications.

In a press statement, the source said that total Federal Housing Administrations were up by .7 percent between the week ending in Feb. 24 and the previous one. More specifically, the amount of mortgage applications increased by 5.8 percent, based on figures from the Market Composite Index. What's more, average contract interest rates for 30-year fixed-rate mortgages with both conforming and jumbo loan balances decreased by .06 percent.

Other sources have also reported notable changes in the mortgage sector: NerdWallet ranked 30 and 15-year fixed mortgages on a graph tracking rate progress from Jan. 24 to Feb. 27, showing the fluctuation in rates throughout this time. This picture showed 30-year fixed mortgage rates to change a lot more on a week-to-week basis than their shorter counterpart, although both have had an overall downward trend since the beginning of the year.

So far, both rates seem to have hit their peak on Jan. 27, when the 30-year mortgage rate was at 4.48 percent and the 15-year mortgage rate at 3.85 percent. As of Feb. 27, this had dropped for both rates, to 4.27 and 3.65 percent, respectively.

The Motley Fool recently parsed out data from the Census Bureau regarding the average monthly homeownership cost, including not just the mortgage payment but other related expenses. The source said that this average monthly cost was $1,494 in 2015, and for 28.5 percent of homeowners, the cost ranged somewhere between $1,000 and $1,499 per month.