Mortgage Applications Bounce Back After Sandy

November 15, 2012 (Chris Moore)

A significant jump in mortgage applications in the states impacted by Hurricane Sandy pushed volume up for the first time in five weeks according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 9th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 12.6 percent from the previous week and follows a 5.0 percent decline the week before. It was the first time in five weeks that overall applications have increased.

On an unadjusted basis, the Index increased by 12 percent from the previous week and follows a similar five percent decline from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index climbed 11 percent from the previous week after declining by five percent the week before, while the unadjusted Purchase Index increased by eight percent over the previous week. The unadjusted Purchase Index was 22 percent higher than at the same time a year ago.

Refinance Applications:

The Refinance Index increased 13 percent from the previous week after moving downward by five percent the week before. The refinance share of mortgage activity increased to 81 percent of total applications, up from 80 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)

3.52*

3.61

0.45

0.45

Decreased

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

3.83

3.88

0.41

0.36

Decreased

15-Year FRM

2.88

2.95

0.37

0.40

Decreased

FHA 30-Year

3.34

3.37

0.78

0.75

Decreased

5/1 ARM

2.60

2.61

0.30

0.41

Decreased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity remained at about 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