Lower Rates Result in Refinance Uptick

Applications for home mortgages increased slightly last week as interest rates dipped lower resulting in an uptick in refinance applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 30th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 1.3 percent last week and follows a 2.5 percent decline from the week before.

On an unadjusted basis, mortgage loan application volume increased 0.3 percent from the previous week after falling by three percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by 0.4 percent after posting a two percent increase the week before. The unadjusted Purchase Index was three percent lower than the previous week but was still six percent higher than during the same period last year.

Refinance Applications:

The Refinance Index increased by two percent from the previous week after falling five percent the week before. The refinance share of mortgage activity moved to 61 percent of total applications from 60 percent the week before.

Mortgage Interest Rates:
 

Average Contract Mortgages Rates
(80% loan-to-value)

Type of
Loan

Interest Rate (%)

Points

Effective Rate

Current

Previous

Current

Previous

30-Year FRM Conforming
($417,500 or less)

4.73

4.80

0.33

0.41

Decreased

30-Year FRM Non-Conforming
($417,501 or more)

4.71

4.78

0.25

0.34

Decreased

15-Year FRM

3.75

3.84

0.35

0.32

Decreased

FHA 30-Year

4.48

4.52

0.30

0.32

Decreased
5/1 ARM

3.49

3.50

0.37

0.37

Decreased

 
The adjustable-rate mortgage (ARM) share of activity remained at around seven percent of total applications.

Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate, FHA mortgage rates

Source:
Mortgage Bankers Association

Reported by Chris Moore