Real Estate News

Mortgage delinquency rates low, says MBA

Published: 06 Jun 2017

With the arrival of June, mortgage rates seem to be declining, as is the volume of applications, according to one new statement. Other sources have said that the current housing market is fiercely competitive, with a tight inventory, and the news of application rates reflect this in a recent statement from the Mortgage Bankers Association.

In its summation of the changes of the last full week of May, the MBA noted decreases for 30-year fixed rate mortgages and their average contract interest rates: both the loan balances for those at or under $424,100 and Federal Housing Authority mortgages went down during this time.

This trend also applied to other loan products, including 5/1 Adjustable Rate Mortgages and 15-year fixed-rate mortgages. In each case, the downward trend was for under .10 percent. As a whole, The Market Composite Index decreased by 4 percent minus adjustments.

This measurement comes from the overall volume of applications, the source said, broken down by each type as usual. Refinancing activity decreased as well, both in terms of general mortgage activity and the Refinance Index, the last of which declined by more than either the Market Composite or Purchase Indexes.

Nerd Wallet recently alleged that the future of mortgage rates will parallel job growth, as well as calling the chance of a new interest rate raise for June an "increasing likelihood". Its own ranking had 30-year fixed rate mortgages at 4.08 percent, 15-year fixed rate mortgages at 3.46 percent and 5/1 ARMs between them at 3.81 percent. 

The U.S. Department of Housing and Urban Development said that the FHA insured $245 billion in home loans solely for last year, extending its services to at least 46 million citizens. This was also part of an announcement from the current administration about June being National Homeownership Month, with the theme being "Find Your Place in a New Era of Homeownership".