Mortgage Applications Decline Again as Rates Continue to Climb

Another week of increases in mortgage rates led to another week of decreases in mortgage applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 25th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 9.8 percent last week and follows a 7.3 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume fell by ten percent after falling by seven percent the week before.

Purchase Applications:

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

Refinance Applications:

The Refinance Index was 12 percent lower than last week after falling by eight percent the week before. The refinance share of mortgage activity fell to 74 percent of total application from 76 percent the week before.

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)

3.78

3.67

0.39

0.41

Increased

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

3.9.3

3.87

0.36

0.25

Increased

15-Year FRM

2.96

2.88

0.32

0.31

Increased

FHA 30-Year

3.53

3.43

0.13

0.16

Increased

5/1 ARM

2.60

2.55

0.23

0.23

Increased

 
The adjustable-rate mortgage (ARM) share of activity increased to about five 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