White Lies’ on Mortgage Applications Are Costly to Lenders, mortgage applications.#Mortgage #applications


The New York Times

Mortgage applications

Mortgage lenders have good reason to require borrowers to specify whether they intend to live in a house they are financing.

“If it’s not your primary residence, the chance of you defaulting is very high versus your primary residence, where you’re living with your family,” said Tim Coyle, the senior director for financial services at LexisNexis Risk Solutions, which develops risk mitigation tools for banks.

On a loan application, borrowers must attest to whether the residence is a primary, second or investment property. At closing, they must sign an owner occupancy affidavit saying they will occupy the home themselves within 60 days of closing.

But some borrowers who plan to rent out a property rather than live in it aren’t truthful about their intent — a form of misrepresentation called occupancy fraud. “People will try to get an owner-occupied loan as opposed to an investment property loan because you can get a higher loan-to-value, meaning a lower down payment, on a primary,” said John T. Walsh, the president of Total Mortgage Services in Milford, Conn. “And you’re going to get a better interest rate on an owner-occupied.”

While the down payment on a primary residence could be as low as 3 percent, a loan for a single-family investment property would likely require at least 15 percent down, he said. And the interest rate on that loan could be as much as half a percentage point higher.

Occupancy fraud represented 19 percent of all mortgage misrepresentation on loans delivered to Fannie Mae in 2013, the latest data available from the agency, making up the largest category of fraud after misrepresentation of debt liabilities. False occupancy claims have since declined, according to the 2014 fourth-quarter fraud report released last month by Interthinx, another provider of risk mitigation tools. By its own measure, occupancy fraud was down 6 percent from a year ago, a decline that correlated with fewer loans involving borrowers with multiple loan applications on file, or using straw buyers. (Straw buyers, frequently family members or friends, obtain mortgages for those who would not qualify for a loan.)

Occupancy fraud is costly to lenders because it can raise the default rate and the risk that, if a fraudulent loan is exposed, the loan investor (like Fannie Mae) could require the lender to buy back the loan.

Aided by technology, lenders are getting better at rooting out false occupancy claims up front. Among the red flags are borrowers with mortgage applications pending elsewhere, or an unusually long commuting distance between the borrower’s place of employment and the property to be financed.

This type of fraud is more often attempted on a cash-out refinance, said David Norris, the president of loanDepot, an independent mortgage lender. Lenders might compare the historical address on the borrower’s credit report with the address of the property they say they are living in. “Or if the appraiser goes out and sees there aren’t appliances in the home, we know it’s not a primary residence being refinanced,” Mr. Norris said.

When lenders suspect something amiss, he said, they can file a Suspicious Activity Report with the Treasury Department’s Financial Crimes Enforcement Network, which maintains a database of suspicious and fraudulent mortgage activity.

LexisNexis has a new verification of occupancy product that applies a score to a borrower’s potential for occupancy fraud by drawing on 16 data elements, Mr. Coyle said. The tool is for use on applications for refinance or home equity lines.

Many people think lying about occupancy is “the white lie of mortgage fraud,” he said. “But it’s extremely costly to the banks and financial institutions.”

For weekly email updates on residential real estate news, sign up here. Follow us on Twitter: @nytrealestate.


White Lies’ on Mortgage Applications Are Costly to Lenders, mortgage applications.#Mortgage #applications


The New York Times

Mortgage applications

Mortgage lenders have good reason to require borrowers to specify whether they intend to live in a house they are financing.

“If it’s not your primary residence, the chance of you defaulting is very high versus your primary residence, where you’re living with your family,” said Tim Coyle, the senior director for financial services at LexisNexis Risk Solutions, which develops risk mitigation tools for banks.

On a loan application, borrowers must attest to whether the residence is a primary, second or investment property. At closing, they must sign an owner occupancy affidavit saying they will occupy the home themselves within 60 days of closing.

But some borrowers who plan to rent out a property rather than live in it aren’t truthful about their intent — a form of misrepresentation called occupancy fraud. “People will try to get an owner-occupied loan as opposed to an investment property loan because you can get a higher loan-to-value, meaning a lower down payment, on a primary,” said John T. Walsh, the president of Total Mortgage Services in Milford, Conn. “And you’re going to get a better interest rate on an owner-occupied.”

While the down payment on a primary residence could be as low as 3 percent, a loan for a single-family investment property would likely require at least 15 percent down, he said. And the interest rate on that loan could be as much as half a percentage point higher.

Occupancy fraud represented 19 percent of all mortgage misrepresentation on loans delivered to Fannie Mae in 2013, the latest data available from the agency, making up the largest category of fraud after misrepresentation of debt liabilities. False occupancy claims have since declined, according to the 2014 fourth-quarter fraud report released last month by Interthinx, another provider of risk mitigation tools. By its own measure, occupancy fraud was down 6 percent from a year ago, a decline that correlated with fewer loans involving borrowers with multiple loan applications on file, or using straw buyers. (Straw buyers, frequently family members or friends, obtain mortgages for those who would not qualify for a loan.)

Occupancy fraud is costly to lenders because it can raise the default rate and the risk that, if a fraudulent loan is exposed, the loan investor (like Fannie Mae) could require the lender to buy back the loan.

Aided by technology, lenders are getting better at rooting out false occupancy claims up front. Among the red flags are borrowers with mortgage applications pending elsewhere, or an unusually long commuting distance between the borrower’s place of employment and the property to be financed.

This type of fraud is more often attempted on a cash-out refinance, said David Norris, the president of loanDepot, an independent mortgage lender. Lenders might compare the historical address on the borrower’s credit report with the address of the property they say they are living in. “Or if the appraiser goes out and sees there aren’t appliances in the home, we know it’s not a primary residence being refinanced,” Mr. Norris said.

When lenders suspect something amiss, he said, they can file a Suspicious Activity Report with the Treasury Department’s Financial Crimes Enforcement Network, which maintains a database of suspicious and fraudulent mortgage activity.

LexisNexis has a new verification of occupancy product that applies a score to a borrower’s potential for occupancy fraud by drawing on 16 data elements, Mr. Coyle said. The tool is for use on applications for refinance or home equity lines.

Many people think lying about occupancy is “the white lie of mortgage fraud,” he said. “But it’s extremely costly to the banks and financial institutions.”

For weekly email updates on residential real estate news, sign up here. Follow us on Twitter: @nytrealestate.


Mortgage Bankers Association, mortgage applications.#Mortgage #applications


Mortgage applications

Mortgage applications

Mortgage applications

Mortgage applications

Mortgage applications

Select Your Focus:

MBA Now

MBA Now, an online video show discussing important issues with MBA leadership and members.

Capital View Blog

MBA President and CEO David H. Stevens on the Problems with the VA’s Interest Rate Reduction Refinance Loan Program

MBA News

Mortgage Applications Increase in Latest MBA Weekly Survey

MBA Statement on FHA s Annual Report to Congress

MBA Statement on Resignation of CFPB Director Richard Cordray

New Home Purchase Mortgage Applications Rebound in October, Up 16.1 Percent Year Over Year

MBA Statement on House Passage of NFIP Reauthorization

Conferences and Meetings

Summit On Diversity and Inclusion

Live Stream – Summit On Diversity Inclusion

Independent Mortgage Bankers Conference

MBA s Mergers Acquisitions Workshop

National Mortgage Servicing Conference Expo

CREF/Multifamily Housing Convention Expo

Research and Data

MBA Education

Mortgage applications

I love being part of MBA because it’s given me the chance to meet and work with folks who have the same passion for this industry as I do. MBA provides the framework for all of us to work together toward common goals. And with such strength in numbers, we can move our industry forward.

Debra W. Still, CMB, 2013 MBA Chairman, President and Chief Executive Officer, Pulte Mortgage LLC

Mortgage applications

We get an opportunity to actually meet with legislators, decision makers and regulators.Those are the folks who are formulating what the future of our industry is going to look like. It is fantastic to have a voice in that process.

Chris George, President, CMG Financial

Mortgage applications

Real estate finance is always about change. The change can be legislative, regulatory or economic. MBA helps us anticipate change before it occurs.

E.J. Burke, 2014 MBA Chairman, Co-President, KeyBank Mortgage

Mortgage applications

Through active member engagement, you can lend your expertise to MBA’s grassroots and national policy and legislative agendas to truly be the voice of the industry, as the future of real estate finance in America is determined.

Bill Cosgrove, CMB, 2015 MBA Chairman, Chief Executive Officer, Union Home Mortgage Corp.

Mortgage applications Mortgage applications


Mortgage web site design 1003 Applications and Forms Web Page Broker Tools #jumbo #mortgage #calculator


#mortgage websites

#

Welcome to the Future

Of Internet Marketing

Next Level Lead Generation

Next Level Social Media and Mobile

Lead Capture

We offer a variety of lead capture and lead generation tools, including lead capture on nearly every page, and of course its fully customizable. If you want to customize fields and question tailored to your market you can easily do so

Landing Pages

With our one of a kind landing page module you can create and customize landing pages for all of your campaigns from PPC to Facebook, to Zillow, Bankrate and much more.

Customizable 1003

Our industry leading secure 1003 application imports directly in major LOS such as Calyx Point, Encompass and of course its designed by user interface experts for a smooth experience and more completed apps.

We offer a complete suite of lead capture tools. From the your home page to your mobile site to landing pages to embedded Facebook applications

Landing Pages

Our landing page module provides you with the next level in lead generation and marketing. Choose from a variety of templates and then customize them to fit your needs!

Custom Design

Not only do we offer the most professional designs, they are also fully customizable.
If you want to change content, pictures, pages, tabs, etc its easy to do.

Custom Apps

Our new app suite will offer you the ability to customize and create your own 1003 applications.
Don’t want a field require or want to add a new field – you can and its easy!

What We offer?

Mortgage Websites

As the market leader in mortgage website marketing design, and lead generation we have you covered. Complete and ready to rock and roll 30 minutes after you sign up, our sites are also fully customizable from every picture, tab, page, to the questions and fields on your forms. And yes its easy to use and offer training and support if you get stuck.

  • Turn Key Ready to go
  • Current Professional Design
  • Completely Customizable
  • Latest Technology and Features
  • Loan Officer Minisites and 1003s
  • SM and Facebook integration
  • Landing Page Wizard
  • Much Much More

1003 Forms

Our new 1003 application software offers the ability to create custom apps. You control what questions you want to ask. Want to add a question not on the 1003 no problem. Don’t want to ask certain questions no problem. All done through your control panel. And of course you can still brand the look and feel to your company.

SEO and PPC

Everyone wants great SEO and PPC campaigns and many companies promise it. We deliver

  • SEO tools built into your site control panel
  • Training and Statistics
  • Managed SEO (included in elite package)
  • Managed PPC (included in elite package)

Social Media

Social Media is the place people go when they are online. We help you get there too. From social media integration into your site to scheduled posting to multiple social platforms. To Facebook lead generation and page design enhancements to give you that professional edge. We have you covered.

Landing Pages

If you are marketing on the internet then you are probably going to need landing pages. We have multiple templates to use and of course they are fully customizable. Change text, pics, embed video, edit form fields. Included with premiere and elite plans.

Mobile Marketing

Mobile marketing is becoming more important as people shift their internet usage increasingly to mobile devices.

  • Fully Mobile Capable
  • Customizable Smart Phone mobile sites (premiere and elite plans)
  • Mobile Landing Pages

Ride the wave to success

Our combination of: design, technology and marketing materials make us the easy choice for your internet marketing needs. Our sites are ready out of the box, but also fully customizable so if you need to change content from images, tabs, questions on lead capture, or even add video its no problem!

Technology And Service

As the market leader in internet marketing for mortgage and related companies we don’t rest on our laurels selling old sites and products. Our team is always busy at work improving and adding on to our product offerings. Still not convinced well give you a phone call after you sign up to welcome you aboard and help you get started.

State of The Art

We stay on top of the of latest trends in internet marketing and bring them to you first so you can stay a step ahead of your competition.

Customer Service

We know we have the best products but if you can’t fully utilize them then what good is that? That’s why we have phone as well as full online training and support.

Competitive Pricing

Even with all our offerings our product suite is priced competitively.


Why mortgage applications are declined and what to do next – Money Advice Service #mortgage


#mortgage applications

#

Why mortgage applications are declined and what to do next

If your mortgage application has been declined, it’s important to look over what you can do to improve your chances for next time. But don’t rush off to another lender as each application could show up on your credit file. Use our checklist below to see why your application might have been turned down and what you can do to increase your chances next time.

Common reasons for a declined application and what to do

Poor credit history

Check your credit file with the credit reference agencies (Experian, Equifax and CallCredit) to see what information they have about you. If any of the information on your credit report is wrong, you can correct it. Find out How to improve your credit rating .

Not registered to vote

You need to be on the electoral register at your current address so lenders can confirm who you are and where you live. It’s quick and easy to do online at aboutmyvote.co.uk or through your local council.

Too many credit applications

When you apply for credit, the lender will search your credit report to check your suitability. Most searches are recorded, leaving a footprint on your credit history. Repeatedly applying for credit makes it look like you have problems, so try to avoid taking out new credit deals three to six months before you want a mortgage.

Too much debt

Look at our Budget planner to try and bring down your existing debt.

Payday loans

Any payday loan you’ve had since 2011 will be listed on your file, even if you’ve paid it off on time. It is still counted against you as lenders may think you won’t be able to cope with the financial responsibility of having a mortgage.

Administration errors

Lenders aren’t perfect. Many of them put the details from your application into a computer so you may have failed because of a mistake. Ask for an interview to discuss your application.

Not earning enough

You can ask for a smaller mortgage, or see if you qualify for shared ownership or one of the home buying schemes for people on lower wages. Use our Mortgage affordability calculator to see what you can afford to borrow.

Not matching the lender’s profile

Some lenders prefer to lend to a specific demographic. An independent mortgage adviser has experience of the market and a better idea of the type of borrower that lenders want. Read more on Choosing the right mortgage .

Small deposit

See our ideas on saving for a deposit. There are also several schemes available to buyers with only a 5% deposit.

Other reasons you can have difficulties

Did you know?

Three out of four borrowers are accepted for a mortgage (Source: Intermediary Mortgage Lenders Association)

If you’re self-employed or a contract worker

You have to prove you have a steady income by showing tax statements and business accounts for at least the last two to three years. You might also have to prove you have work secured for the future – but that is a decision that will vary from lender to lender.

If you’ve lived in the UK for less than three years

Most lenders are unwilling to lend to new arrivals, but not all. You’ll need to show your employment contract and a visa, which proves you have permission to live and work in the UK.

Where to go for help

A professional mortgage broker or independent financial adviser who specialises in mortgages will have regular dealings with a wide selection of lenders. They will be aware of what different lenders require before offering a mortgage, and will speak to the lender on your behalf. Read our guide on Choosing the right mortgage .

Your next step

Share this article

  • Share this article on Facebook

Share this article on Facebook

  • Share this article on Twitter
    Share this article on Twitter
  • Share this article by Email

    Share this article by Email


  • Mortgage Forms and Applications #home #mortgages


    #mortgage forms

    #

    Mortgage Library and Resources

    Below you ll find some great resources to help you understand the steps involved in applying for a mortgage and what your options are:

    Guides and Brochures

    Your Step-by-Step Mortgage Guide
    One of the first steps in buying a new home is to take a realistic look at what you can afford and how you are going to pay for it. If you are like most people, you will probably have to finance your home purchase with a mortgage loan. What follows is an explanation of terms and options to understand when considering what mortgage is right for you.

    Why Use a Mortgage Broker
    If you want to save time, reduce your leg work, understand all your options and make sure you find the best possible deal a mortgage associate is the ideal solution. The best news is that you can get started without even leaving your house or office. Take advantage of the expert knowledge provided by a Brokers For Life Mortgage associate to make an informed mortgage choice.

    Why is your Credit Score Important
    Your credit report is simply a listing of all your mortgage and consumer debt. In Canada mortgage brokers use two credit bureaus, Trans Union and Equifax find out what s on these and how they affect you.

    When your Mortgage is about to expire
    When your mortage is due for renewal, it is a great opportunity to make sure you have the right mortgage for your current needs.

    Land Transfer Tax (LLT)

    Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, a land transfer tax/property purchase tax will be levied on properties purchased.

    Forms and Applications

    Mortgage Application
    Prefer to print out the application and complete it you can download it here:

    Gift Letter
    To confirm that money given is a gift:

    Consent Forms

    Client Consent Form
    In order for us to get the ball rolling on your application, we require the following form be completed:


    Home Loans – Bond Applications #mortgage #loans #calculator


    #get a home loan

    #

    Apply for a home loan online with ooba, South Africa s home finance experts

    Negotiating a home loan can be a complicated and time-consuming process. This is when you need the experts on your side. Apply for a bond through ooba. We know the banks, understand the system and will hunt down the best deal for you. Since 1998, ooba has secured more than R200 billion in home loans for our clients. We’re skilled negotiators and masters at presenting your application in the best possible way. Several banks compete for your business. That can only mean a better deal. And a better chance of home loan approval. Dealing with an expert, means your life stays simple. A streamlined home loan approval process, with no duplication of forms. We’ll take the scissors to the red tape, magnify the fine print, and get you the best deal, quickly. We know our stuff, so you don’t have to worry. Independent. Straight-talking. And for free. Ask one of our home finance experts to call you back.

    Download free mobile app

    How we helped our customers

    This is our dream home and this is really a dream come true for us. Thanks a lot for your help and quick responses. It has really been a great experience working with ooba.

    Sarita and Antonio Friguglietto, Linden – Johannesburg

    I am thankful for the wonderful manner in which you assisted me with my insurance. You are an amazing asset to ooba.


    Mortgage applications up 8 #mortgage #loans #rates


    #mortgage applications

    #

    Mortgage applications up 8.8% as buyers look to lower rates

    Defying expectations for the start of 2016, mortgage rates spiraled down further last week, spurring more volume in the mortgage market. Total applications increased 8.8 percent on a seasonally adjusted basis last week from the previous week, according to the Mortgage Bankers Association.

    Refinance applications were behind much of the surge, rising 11 percent from the previous week, seasonally adjusted. The results include an adjustment for the Martin Luther King Jr. holiday.

    Borrowers are clearly seeing the rate drop as perhaps a last opportunity to seize on historically low rates. Refinance volume is still down 30 percent from the same week a year ago, when mortgage rates were even lower. Most economists predict that interest rates will rise steadily through 2016, although plunging equity markets in the U.S. and overseas have trumped that premise so far.

    The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to its lowest level since October, 4.02 percent, from 4.06 percent, with points decreasing to 0.40 from 0.41 (including the origination fee) for 80 percent loan-to-value ratio loans.

    A home mortgage sign on a Wells Fargo branch in Brooklyn, New York.

    “As a result of more financial market volatility and continued flight to quality by investors, mortgage rates have decreased 18 basis points since the first week of January 2016,” said Joel Kan, an MBA economist. “With a 30-year fixed rate of 4.02 percent in the most recent week, the refinance index was at its highest since the week ending October 1, 2015, a week when rates were 3.99 percent, and there was a rush of applications before the Know Before You Owe rule implementation deadline.”

    That new rule from federal regulators, designed to protect borrowers, was widely expected to delay loan closings, and recent Realtors’ confirm that it did.

    Mortgage applications to purchase a home increased 5 percent week-to-week, seasonally adjusted, and were 22 percent higher than the same week one year ago. Homebuyers are less sensitive to weekly rate moves, as they are facing a much bigger issue in the market today, namely a lack of homes for sale and fast-rising prices.

    Home sales rebounded in December, but largely due to the new mortgage rule that delayed some closings into December. Real estate agents are not looking for the same growth in January, as decade-low supply continues to plague neighborhoods nationally.

    “At Redfin we are seeing one of the slowest starts to the year that we’ve seen in a long time. Lots of people are touring homes but few are making offers,” said Nela Richardson, chief economist the real estate brokerage. “Even where there is inventory, a lot of it is overpriced or unappealing. Homebuyers this year are motivated but not desperate, and they refuse to overpay.”

    Diana Olick CNBC Real Estate Reporter


    E*Trade Mortgage – Introduction to E*Trade Mortgages Plans – E*Trade Mortgage Applications #refinance #mortgage #calculator


    #etrade mortgage

    #

    E*Trade Bank Mortgages are one of a selection of financial and banking products available from E*Trade Bank, which is viewed as one of the most forward looking banks in the banking industry.

    Section 1 – About E*Trade Bank Mortgage

    At the beginning of 2010, E*Trade Bank Mortgage gives you up-front pricing when you are purchasing a home, lets you lock in a lower rate or get cash back on refinancing and lets you apply online. E*Trade bank purport to beat any lender’s pricing or give you $500 and they offer $1000 off of closing costs for qualified E*Trade customers. E*Trade Bank mortgages application section will apparently give you same day pre-approval or pay you $250. With performance incentives, E*Trade Bank Mortgages also currently offer a closing date guarantee on your home purchase mortgage application, where you will get an interest rate reduction if they can’t close the loan application on your desired date. This appears to be one of the bank’s mortgage application division’s unique selling points.

    The E*Trade Bank Mortgage options include fixed rate mortgages, adjustable rate mortgages, interest-only adjustable rate mortgages and jumbo loans. Down payments, as at the beginning of 2010, range from 3% down on FHA and VA, and conventional loans applications are currently available for less than 20% down with Private Mortgage Insurance or PMI. If you can’t afford closing costs, they can be included in the interest payments, depending on your credit. E*Trade Bank Mortgage options purport to offer competitive rates over other leading lenders.

    The Benefits of E*Trade Bank Mortgage

    What E*Trade Bank Mortgage products purport to offer to borrowers is competitive pricing on home mortgage applications, whether they are to purchase a home or refinance your existing home. With their price incentives, you can save additional money, especially if you are a qualified E*Trade customer. Their lowest price guarantee apparently assures you that you are getting the lowest rate and their rates are lower than national averages.

    Application for E*Trade Mortgage

    You can apply easily online and monitor the progress of your mortgage loan. Once you are pre-approved, it is a matter of getting the proper documentation together to close your mortgage loan. The mortgage process is apparently laid out pretty simply and they purport to offer a fast and easy way to refinance your existing mortgage, allowing you to take cash out, if you qualify. The refinance calculator is helpful in determining whether it is advantageous for you to refinance your existing mortgage and E*Trade Bank Mortgage offers a checklist that is easy to follow. When you need to speak with a mortgage specialist, there is one assigned to your account, but you can access your application 24/7 on their website.

    It is however always important to seek professional independent investment advice when making key investment decisions, such as making a mortgage application.

    For those that want a competitive rate and an easy application process for a mortgage, E*Trade Bank Mortgage options often apparently offer benefits that can help you save on your monthly payment with a competitive interest rate. The quick pre-approval helps you complete a home purchase and close on the date you desire or you get an interest rate reduction through their closing date guarantee program.

    Quick E*Trade Mortage Application Approval

    If you are looking for more information on E*Trade Bank Mortgages, the quickest way to get a pre-approval and speak with a representative is to call the toll-free number, since the same day approval is based on a telephone application with credit report authorization. E*Trade Bank Mortgage prides themselves on offering the most competitive interest rates, quickest and the simplest application process and most proficient closing process.

    E*Trade Bank Mortgages offer several repayment options, so you can get the terms that work best for your situation. Your professional independent mortgage consultant can advise you on the advantages of each program and help you select the best option for your situation, including refinancing your existing mortgage for a monthly savings. You will need to contact E*Trade Bank Mortgages division directly to understand the latest application service and product offerings, but please remember to also take independent professional advice before making mortgage or investment applications.

    Comments are closed.


    Mortgage applications fall 4 #fha #mortgage #rates


    #mortgage applications

    #

    Mortgage applications fall 4.8%, despite rate drop

    Low mortgage rates are no longer a novelty, hence no longer a sudden incentive for borrowers. Total mortgage application volume decreased 4.8 percent on a seasonally adjusted basis for the week ending February 26th versus the previous week, according to the Mortgage Bankers Association (MBA). This follows a mini-refinance boom, as rates fell through January and February to near record lows.

    Applications to refinance decreased 7 percent from the previous week, seasonally adjusted, falling to the lowest level since the start of the year. The average amount for refinance loans was $279,200, the lowest since mid-January, when refinances really took off.

    “Despite a slight drop in rates, refinance applications decreased overall. Applications for both conventional and government refinance loans decreased, as the supply of borrowers who could benefit from rates at this level begins to diminish,” said Joel Kan, MBA’s associate vice president for forecasting and industry surveys.

    The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.83 percent from 3.85 percent, with points decreasing to 0.39 from 0.42 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans, according to the MBA.

    Mortgage applications to purchase a home, which are less rate-sensitive, fell 1 percent for the week but are 27 percent higher than the same week one year ago, suggesting a stronger start to the spring 2016 housing market.

    Refinance volume will likely move even lower this week, as rates rose sharply to levels not seen in a month.

    “It continues to be the case that context is important when discussing rate movement during that time. In fact, early February was approximately when rates leveled-off after a strong move lower to begin 2016,” noted Matthew Graham, chief operating officer of Mortgage News Daily. “This range has been narrow enough that all but a few days during the past month have seen contract interest rates at the same level.”

    Essentially, it is the upfront costs or fees that have been changing over the past month, pushing the average rates higher and lower; on Tuesday, however, as major stock averages jumped to their highest levels in nearly two months, the change in bond yields, which rates loosely follow, was significant enough to move the contract mortgage rate higher.

    Added Graham: “3.625 percent had easily been the most prevalent conventional 30-year fixed quote on top tier scenarios. [Tuesday’s] losses mean more borrowers will be seeing 3.75 percent.”

    All eyes are now on the February employment report, set to be released Friday by the Bureau of Labor Statistics. A weak report could send rates lower again, and vice versa.

    Diana Olick CNBC Real Estate Reporter