Mortgage Application Volume Declines

November 23, 2012 (Chris Moore)

Mortgage application volume fell for the fifth time in the last six weeks according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 16th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 2.2 percent from the previous week and follows a 12.6 percent increase the week before.

On an unadjusted basis, the Index declined by 13 percent from the previous week due to the day lost because of Veteran’s Day and follows a 12 percent increase from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index climbed three percent from the previous week after climbing by 11 percent the week before, while the unadjusted Purchase Index declined by 11 percent over the previous week, also due to the Veterans Day holiday. The unadjusted Purchase Index was six percent lower than at the same time a year ago.

Refinance Applications:

The Refinance Index declined three percent from the previous week after moving upward by 13 percent the week before. The refinance share of mortgage activity remained unchanged at 81 percent of total applications.

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)

3.54

3.52*

0.40

0.41

Increased

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

3.76

3.83

0.40

0.41

Decreased

15-Year FRM

2.89

2.88

0.25

0.37

Decreased

FHA 30-Year

3.36

3.34

0.63

0.78

Decreased

5/1 ARM

2.62

2.60

0.37

0.30

Increased

*Survey record low

The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications.

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

Sources:
Mortgage Bankers Association