Real Estate News

Latest May mortgage applications rates droop, says MBA

Published: 24 May 2017

The Mortgage Bankers Association survey results for the second week of May are out, and they seem to show a decline. Though it needs to be taken in context, it does possibly add to a continuous dip in application rates for mortgages, with some other statistics also following suit.

A statement summarizing the survey results said they come from more than 75 percent of the country's mortgage applications, as always, and overall suggest a somewhat chillier picture for would-be mortgage owners. While many of the rates grew only slightly, the Refinance Index was down 6 percent in the span of a week, and the Market Composite Index was 4.1 percent lower in that same time.

On the other hand, the Primary Mortgage Market Survey from Freddie Mac focused on slightly different statistics. The most prominent was a drop for the 30-year fixed mortgage level, with this class descending three points after an upward bump between April and May.

Both the 15-year fixed rate and 5-year "Treasury-indexed hybrid adjustable rate" mortgages decreased during this assessment, though these two don't seem to have plunged as much as the 30-year offerings. All three of these were actually higher than they were a year ago, the statement on the source said.

Instead of focusing on this news itself, buyers may take the message away that there's possibly tumultuous conditions to be aware of, and no one should assume too much at any given time. In a recent article, the National Association of Realtors managing director of housing research, Danielle Hale, said that "lower mortgage rates translate into a lower monthly payment," and could therefore be "good news" to those looking to buy and take advantage of the current situation while it lasts.