US Mortgage Loan-to-Price Ratio Monthly Trends October 2009
The US mortgage loan-to-price ratio registered mixed trends in October 2009, according to the latest results of the Monthly Survey of Rates and Terms on Conventional Single-Family Non-farm Mortgage Loans carried out by the Federal Housing Finance Agency.
In particular, the average loan-to-price ratio for fixed-rate 30-year $417k or less loans increased in October 2009 to 76.3% from 75.9% in the previous month. However, the average loan-to-price ratio for fixed-rate 15-year loans decreased in October 2009 to 62.5% from 68.3% in the previous month.
The 30-year-loan LTP ratio has registered a slight decline in the last 12 months as in November of 2009 it averaged 78% (see graph below). The lowest 30-year-loan LTP ratio in the last 12 months was registered in September 2009 when it averaged 75.9%.
The lowest 15-year loan-to-price ratio over the period October 2008-October 2009 was registered in May when it averaged 60.6%. Since then it climbed steadily and reached 68.3% in September 2009 before dropping below 63% in October.
The graphs below present monthly LTP ratio trends for 30-year and 15-year mortgages over the period October 2008-October 2009.
Loan-to-Price Ratio for 30-Year US Mortgages: October 2008-October 2009
Sources: Federal Housing Finance Agency, www.Property-Investing.Org
Loan-to-Price Ratio for 15-Year US Mortgages: October 2008-October 2009
Sources: Federal Housing Finance Agency, www.Property-Investing.Org
