Mortgage Applications Climb as Rates Hit Record Lows

Mortgage applications increased last week as interest rates for the 15-year fixed rate mortgage and the 5-year adjustable rate mortgage hit record lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 3rd, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 7.0 percent last week and follows a 1.8 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume also increased by seven percent after increasing by two percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by two percent from last week after posting a three percent decline the week before. The unadjusted Purchase Index was three percent higher than the previous week and was 12 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was eight percent higher than last week after rising by three percent the week before. The refinance share of mortgage activity increased to 76 percent of total applications after spending three consecutive weeks at 75 percent.

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)

3.59

3.60

0.33

0.30

Increased

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

3.79

3.80

0.20

0.29

Decreased

15-Year FRM

2.81*

2.84

0.29

0.26

Decreased

FHA 30-Year

3.35

3.34

0.57

0.37

Increased

5/1 ARM

2.53*

2.55

0.14

0.22

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, FHA mortgage rates

Source:
Mortgage Bankers Association

Reported by Chris Moore