Mortgage Applications Bounce Back After Slow Holiday Week

December 7, 2011 (Chris Moore)

Mortgage applications bounced back after the slow Thanksgiving holiday though activity was still below levels reported two weeks ago according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 2, 2011.

The Market Composite Index, a measure of mortgage loan application volume which includes purchase applications and refinance applications, increased a seasonally adjusted 12.8 percent from the previous week.

On an unadjusted basis, the Index increased 60.2 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is down 3.20 percent.

Purchase Applications:

The seasonally adjusted Purchase Index increased 8.3 percent from the previous week. The four week moving average is up 3.33 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 47.2 percent compared with the previous week and was 0.8 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index increased 15.3 percent from the previous week. The four week moving average for the Index is down 5.13 percent.

The refinance share of mortgage activity increased to 76.0 percent of total applications from 73.9 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)

4.18

4.21

0.48

0.49

Decreased

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

4.52

4.55

0.47

0.45

Decreased

15-Year FRM

3.53

3.58

0.45

0.45

Decreased

FHA 30-Year

3.98

4.00

0.52

0.62

Decreased

5/1 ARM

3.01

2.98

0.54

0.47

Increased

The adjustable-rate mortgage (ARM) share of activity decreased to 5.7 percent of total applications from 5.8 percent the previous week.

November Mortgage Statistics:

Of the mortgage applications made for home purchases, 85.5 percent were for 30-year fixed rate loans while 6.8 percent were for a 15-year fixed rate loan and 5.9 percent were for an adjustable rate loan.

Of the mortgage applications made by borrowers who refinanced their loans, 52.9 percent applied for a 30-year fixed rate loan, 26.2 applied for a 15-year fixed rate loan, 5.8 percent applied for an adjustable rate loan and 15.1 percent of the applications were for a fixed loan other than a 15- or 30-year term.

This week’s results are based on an enhanced sample which captures more than 75% of all retail and consumer direct channel mortgage applications, compared to 50% previously.

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

Sources:
Mortgage Bankers Association