Mortgage Applications Bounce Back after Three Weeks of Declines

Mortgage applications made a robust comeback after three weeks of declines according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 1st, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 14.8 percent and follows a 3.8 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume climbed 15 percent after declining by three percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index also increased by 15 percent from last week after falling by five percent the week before, while the unadjusted Purchase Index was 18 percent higher than the previous week. The unadjusted Purchase Index was 17 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index increased 15 percent from last week after falling by three percent the week before. The refinance share of mortgage activity remained unchanged at 77 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)

3.70

3.77

0.39

0.48

Decreased

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

3.80

3.93

0.37

0.37

Decreased

15-Year FRM

2.96

3.03

0.36

0.34

Decreased

FHA 30-Year

3.47

3.54

0.33

0.41

Decreased

5/1 ARM

2.55

2.65

0.37

0.36

Decreased

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