Mortgage Applications Continue to Increase

(January 24, 2013) Mortgage applications continued to gain momentum as purchase applications reached their highest level in almost three years according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 18th, 2013.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 7.0 percent and follows a 15.2 percent increase from the previous week.

On an unadjusted basis, the Index increased by 8.0 percent.

Purchase Applications:

The seasonally adjusted Purchase Index increased three percent from the previous week after climbing by 13 percent the week before and was at its highest level since May 2010, while the unadjusted Purchase Index was nine percent higher than previous week. The unadjusted Purchase Index was 26 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index increased eight percent from the previous week after increasing by 15 percent the previous week. The refinance share of mortgage activity remained unchanged from last week at 82 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)

3.62

3.61

0.53

0.3.8

Increased

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

3.85

3.88

0.34

0.38

Decreased

15-Year FRM

2.87

2.88

0.39

0.27

Increased

FHA 30-Year

3.40

3.39

0.53

0.58

Decreased

5/1 ARM

2.61

2.66

0.32

0.34

Decreased

The adjustable-rate mortgage (ARM) share of activity rose to nearly four percent of total applications.

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

Source:
Mortgage Bankers Association

Reported by Chris Moore