Wells Fargo & Co (WFC), JPMorgan Chase & Co. (JPM), D.R. Horton, Inc. (DHI): Mortgage Applications Fall by 4.6%

The Mortgage Bankers Association reported today that applications for home loans fell for the second time in a row last week by more than 4%. The industry group’s market composite index decreased by 4.6% compared the the previous seven-day period. This marks the ninth time in 10 weeks that the index has dropped. It remains off its May high by more than 50%.

anImage

The one piece of good news was that applications for purchase-money mortgages increased over the last week — these are home loans related to the purchase of a house as opposed to the refinancing of a previous mortgage. According to the MBA’s data, which covers an estimated 75% of the mortgage market, the purchase-money index climbed by 1% on a sequential basis, and is now 2.9% higher than the same week last year.

Meanwhile, the volume of applications to refinance continues to plummet. On a week-over-week basis, the MBA’s refinance index fell by 8%. It’s now down by 62% from the high in early May.

The overall decline is bad news for banks like Wells Fargo & Co (NYSE:WFC) and JPMorgan Chase & Co. (NYSE:JPM), both of which look to the mortgage market for a considerable amount of revenue. For its part, Wells Fargo & Co (NYSE:WFC) has notched seven quarters in a row in which it originated more than $100 billion in home loans, making it the largest mortgage originator in the country. JPMorgan Chase & Co. (NYSE:JPM), which is the second largest originator, saw volume last month come in at $53 billion.

Shares of these companies are off this afternoon by 0.75% and 1.04%, respectively.

The news is also a disappointment for homebuilders like D.R. Horton, Inc. (NYSE:DHI). The Texas-based company is the largest builder in the country and has been gaining momentum over the last year. In the three months ended June 30, the number of home closings increased by 30% compared to the same time period in 2012. If mortgage applications volumes tail off, however, it won’t be a good sign for D.R. Horton, Inc. (NYSE:DHI) or other members of its industry.

Shares of D.R. Horton, Inc. (NYSE:DHI) are up by 0.45% at the time of writing.

The article Mortgage Applications Fall by 4.6% originally appeared on Fool.com and is written by John Maxfield.

John Maxfield has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of JPMorgan Chase and (NYSE:JPM) Wells Fargo.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!