Mortgage Application Activity Continues to Trend Downward

March 7, 2012 (Chris Moore)

Last week’s mortgage application activity followed the same pattern as the previous week as overall volume edged downward slightly with a slight increase in purchase applications while loan refinance applications dipped again according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 2, 2012.

The Market Composite Index, a measure of mortgage loan application volume which includes purchase applications and refinance applications, decreased a seasonally adjusted 1.2 percent from the previous week.

On an unadjusted basis, the Index increased 10.2 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is down 1.77 percent.

The results from last week included an adjustment for the President’s Day holiday.

Purchase Applications:

The seasonally adjusted Purchase Index increased 2.1 percent from the previous week. The four week moving average is down 0.47 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 14.7 percent compared with the previous week and was 7.8 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index decreased 2.0 percent from the previous week. The four week moving average for the Index is down 2.04 percent.

The refinance share of mortgage activity decreased to 77.0 percent of total applications from 77.9 percent the previous week.

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)

4.06

4.07

0.50

0.51

Decreased

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

4.33

4.34

0.40

0.40

Decreased

15-Year FRM

3.36

3.36

0.38

0.38

Decreased

FHA 30-Year

3.87

3.86*

0.70

0.80

Decreased

5/1 ARM

2.78*

2.78*

0.35

0.38

Decreased

*Survey record low

The adjustable-rate mortgage (ARM) share of activity increased to 5.3 percent of total applications from 5.0 percent the previous week.

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

Sources:
Mortgage Bankers Association