Mortgage Applications Continue to Slide

Applications for mortgage loans declined again last week with applications for home purchases falling to two and a half year lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 14th, 2014.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 4.1 percent last week after declining by 2.0 percent the previous week.

On an unadjusted basis, mortgage loan application volume decreased by 2.0 percent from the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index declined by six percent after posting a five percent decrease the week before. The unadjusted Purchase Index was two percent lower than the previous week and was 17 percent lower than at the same time a year ago.

Applications to purchase homes have been at or lower than the previous year’s levels for the past twenty weeks.

Refinance Applications:

The Refinance Index declined by three percent from the previous week after posting a 0.2 percent decline the week before. The refinance share of mortgage activity fell to 61 percent of total applications after remaining at 62 percent the previous two weeks.

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)

4.50

4.45

0.26

0.34

Increased

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

4.45

4.40

0.11

0.14

Increased

15-Year FRM

3.55

3.49

0.33

0.25

Increased

FHA 30-Year

4.16

4.13

0.14

0.10

Increased

5/1 ARM

3.20

3.11

0.38

0.31

Increased

 
The adjustable-rate mortgage (ARM) share of activity remained at about eight 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