Mortgage Applications Continue to Tumble Amid Rising Rates

Application for home mortgages continued to decline last week as mortgage interest rates climbed even higher last week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 5th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 4.0 percent last week and follows an 11.7 percent decline from the previous week. An adjustment for the 4th of July holiday was included in this week’s survey.

On an unadjusted basis, mortgage loan application volume decreased by 23 percent after declining by 12 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by three percent after posting a similar decline the week before. The unadjusted Purchase Index was 23 percent lower than the previous week but was still five percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was four percent lower than the previous week after declining by 16 percent the week before. The refinance share of mortgage activity remained at 64 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)

4.68

4.58

0.46

0.43

Increased

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

4.86

4.68

0.37

0.38

Increased

15-Year FRM

3.76

3.64

0.41

0.44

Increased

FHA 30-Year

4.37

4.27

0.39

0.44

Increased

5/1 ARM

3.40

3.33

0.54

0.31

Increased

 
The adjustable-rate mortgage (ARM) share of activity fell to seven 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