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Dayton Business Journal...
Mortgage applications
slide as new fees kick in
by Barton Eckert, DBJ Contributor
Wednesday, April 27, 2011
The number of mortgage applications dropped this week.
Mortgage applications decreased by 5.6 percent from a week earlier,
according to data from the Mortgage Bankers Association’s Weekly
Mortgage Applications Survey for the week ending April 22.
“Purchase applications fell last week, driven primarily by a sharp
decrease in government purchase applications as new, higher FHA
[Federal Housing Administration] premiums went into effect,” said
Michael Fratantoni, MBA’s vice president of research and economics.
The decline reverses a 20 percent increase in government purchase
applications over a four week period, which was likely driven by
borrowers attempting to beat the deadline, he said.
The average interest rate for 30-year fixed-rate mortgages decreased to
4.8 percent from 4.83 percent.
The average interest rate for 15-year fixed-rate mortgages decreased to
4.03 percent from 4.07 percent.
The refinance share of mortgage activity increased to 61.6 percent of
total applications from 58.5 percent the previous week. This is the
highest refinance share of the month. The adjustable-rate mortgage
(ARM) share of activity remained unchanged from the previous week at
6.5 percent of total applications.
Mortgage levels will help boost or hurt housing sales as the market
enters the busy spring season.
In March, Dayton-area home sales increased 26 percent compared to the
previous month.
But mortgage activity also can impact the bottom lines at lending
institutions.
Cincinnati-based Fifth Third Bancorp ranks as the largest bank in the
Dayton market. PNC Financial Services Group Inc. (NYSE:PNC), JPMorgan
Chase (NYSE: JPM), First Financial Bancorp (Nasdaq: FFBC) and U.S.
Bancorp (NYSE: USB) round out the top five largest banks in the local
region. KeyCorp (NYSE: KEY) and Huntington Bancshares Inc. (Nasdaq:
HBAN) are just outside the top five.
The Fed recently reprimanded 10 banks for their mortgage practices.
The banks were: Bank of America, Citigroup Inc.; Ally Financial Inc.,
HSBC North America Holdings Inc., JPMorgan Chase & Co., MetLife
Inc., PNC Financial Services Group Inc., SunTrust Banks Inc., U.S.
Bancorp and Wells Fargo & Co.
The Mortgage Bankers survey covers over 50 percent of all U.S. retail
residential mortgage applications, and has been conducted weekly since
1990. Respondents include mortgage bankers, commercial banks and
thrifts.
Read it with links at Dayton Business Journal
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