Mortgage Applications Continue Slide

October 25, 2012 (Chris Moore)

A decline in both refinance and home purchase mortgage applications resulted in a double digit drop in total applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 19th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell for the second consecutive week declining a seasonally adjusted 12.0 percent from the previous week and follows a 4.2 percent decline the week before.

On an unadjusted basis, the Index decreased by two percent from the previous week and follows a 14 percent decline from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index declined by eight percent from the previous week after increasing by one percent the week before, while the unadjusted Purchase Index increased by two percent over the previous week.

Refinance Applications:

The Refinance Index fell by 13 percent from the previous week after moving downward by five percent the week before. The refinance share of mortgage activity fell to 81 percent of total applications, down from 82 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)

3.63

3.57

0.45

0.44

Increased

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

3.85

3.81

0.42

0.42

Increased

15-Year FRM

2.96

2.87*

0.36

0.39

Increased

FHA 30-Year

3.41

3.34*

0.61

0.82

Increased

5/1 ARM

2.72

2.59*

0.33

0.35

Increased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity remained at about four percent of total applications.

Last week’s survey included an adjustment for the Columbus Day holiday.

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

Sources:
Mortgage Bankers Association