Mortgage Applications Decline Again Though Purchase Applications Increase

Another large drop in mortgage refinance applications overshadowed a slight increase in purchase applications as mortgage loan application activity fell yet another week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 24th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 8.8 percent last week and follows a 9.8 percent decline from the previous week.

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

Purchase Applications:

The seasonally adjusted Purchase Index increased by three percent after posting a three percent decline the week before. The unadjusted Purchase Index was two percent higher than the previous week and was 14 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was 12 percent lower than the previous week after falling by the same amount the week before. The refinance share of mortgage activity fell to 71 percent of total applications from 74 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)

3.90

3.78

0.39

0.39

Increased

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

4.07

3.93

0.27

0.36

Increased

15-Year FRM

3.10

2.96

0.30

0.32

Increased

FHA 30-Year

3.62

3.53

0.27

0.13

Increased

5/1 ARM

2.60

2.60

0.30

0.23

Increased

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