MBA Announces Rise in Purchase Applications
MBA Announces Rise in Purchase Applications
MBA Announces Rise in Purchase Applications
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October 6 2010 (Chris Moore)

The Mortgage Bankers Association (MBA) announced today that mortgage applications for buying a home rose last week to the highest levels since the end of the Obama Administrations homebuyer tax credit program in April.

The MBA’s seasonally adjusted Purchase Index rose 9.3 percent, hitting its highest level since the week ending May 7, immediately following the end of the tax credit. Purchase applications have been struggling back in recent weeks after plummeting following the end of the program and up an average of 2.0 percent a week over the past four weeks.

The MBA reported that the rise was driven by a 17.2 percent increase in applications for FHA mortgages, compared to a 3.6 percent increase in applications for conventional mortgages. Jay Brinkmann, MBA chief economists, said the boost may have been due to homebuyers seeking to get their applications in before new guidelines for FHA loans took effect Oct. 4.

Those guidelines included raising the annual insurance premium on FHA mortgages to 0.9 percent of the loan, up from 0.55 percent previously. The up-front premium charged for FHA loans decreased to 1 percent from 2.55 percent previously, although this savings would be cancelled out by the higher insurance fees after about five years.

Unfortunately, overall mortgage applications actually declined last week, driven by a 2.5 percent decline in refinance activity, which makes up about four-fifths of all mortgage applications. The decline occurred despite a big drop in interest rates for 30-year fixed rate mortgages, which fell to an average 4.25 percent, the lowest on record, down from 4.38 percent in the previous week’s MBA survey.

Refinance applications have been steadily declining in recent weeks despite falling interest rates, falling an average of 4.2 percent a week over the past month.

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Helpful Tools
Mortgage
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Estimate your monthly mortgage payment
Auto Loan
Calculator

Determine how much car you can afford before buying
Learn About
Mortgage Loans

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15 Year vs 30 Year
Loan Comparison

Compare 15 year and 30 year mortgage loans
Todays Mortgage
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October 6 2010 (Chris Moore)

The Mortgage Bankers Association (MBA) announced today that mortgage applications for buying a home rose last week to the highest levels since the end of the Obama Administrations homebuyer tax credit program in April.

The MBA’s seasonally adjusted Purchase Index rose 9.3 percent, hitting its highest level since the week ending May 7, immediately following the end of the tax credit. Purchase applications have been struggling back in recent weeks after plummeting following the end of the program and up an average of 2.0 percent a week over the past four weeks.

The MBA reported that the rise was driven by a 17.2 percent increase in applications for FHA mortgages, compared to a 3.6 percent increase in applications for conventional mortgages. Jay Brinkmann, MBA chief economists, said the boost may have been due to homebuyers seeking to get their applications in before new guidelines for FHA loans took effect Oct. 4.

Those guidelines included raising the annual insurance premium on FHA mortgages to 0.9 percent of the loan, up from 0.55 percent previously. The up-front premium charged for FHA loans decreased to 1 percent from 2.55 percent previously, although this savings would be cancelled out by the higher insurance fees after about five years.

Unfortunately, overall mortgage applications actually declined last week, driven by a 2.5 percent decline in refinance activity, which makes up about four-fifths of all mortgage applications. The decline occurred despite a big drop in interest rates for 30-year fixed rate mortgages, which fell to an average 4.25 percent, the lowest on record, down from 4.38 percent in the previous week’s MBA survey.

Refinance applications have been steadily declining in recent weeks despite falling interest rates, falling an average of 4.2 percent a week over the past month.

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
HOW LOANRATENETWORK
LOAN CENTER WORKS
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Helpful Tools

October 6 2010 (Chris Moore)

The Mortgage Bankers Association (MBA) announced today that mortgage applications for buying a home rose last week to the highest levels since the end of the Obama Administrations homebuyer tax credit program in April.

The MBA’s seasonally adjusted Purchase Index rose 9.3 percent, hitting its highest level since the week ending May 7, immediately following the end of the tax credit. Purchase applications have been struggling back in recent weeks after plummeting following the end of the program and up an average of 2.0 percent a week over the past four weeks.

The MBA reported that the rise was driven by a 17.2 percent increase in applications for FHA mortgages, compared to a 3.6 percent increase in applications for conventional mortgages. Jay Brinkmann, MBA chief economists, said the boost may have been due to homebuyers seeking to get their applications in before new guidelines for FHA loans took effect Oct. 4.

Those guidelines included raising the annual insurance premium on FHA mortgages to 0.9 percent of the loan, up from 0.55 percent previously. The up-front premium charged for FHA loans decreased to 1 percent from 2.55 percent previously, although this savings would be cancelled out by the higher insurance fees after about five years.

Unfortunately, overall mortgage applications actually declined last week, driven by a 2.5 percent decline in refinance activity, which makes up about four-fifths of all mortgage applications. The decline occurred despite a big drop in interest rates for 30-year fixed rate mortgages, which fell to an average 4.25 percent, the lowest on record, down from 4.38 percent in the previous week’s MBA survey.

Refinance applications have been steadily declining in recent weeks despite falling interest rates, falling an average of 4.2 percent a week over the past month.

HOW LOANRATENETWORK
LOAN CENTER WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateNetwork and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
LOANRATENETWORK
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.