Mortgage Applications Decline as Home Purchase Activity Falters

February 15, 2012 (Chris Moore)

Home buyers continue to be unimpressed by record low interest rates as mortgage applications for home purchases declined last week pushing overall mortgage application activity downward according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 10, 2012.

The Market Composite Index, a measure of mortgage loan application volume which includes purchase applications and refinance applications, decreased a seasonally adjusted 1.0 percent from the previous week.

On an unadjusted basis, the Index remained unchanged from the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.45 percent.

Purchase Applications:

The seasonally adjusted Purchase Index decreased 8.4 percent from the previous week. The four week moving average is down 3.87 percent for the adjusted Purchase Index.

The unadjusted Purchase Index decreased 3.3 percent compared with the previous week and was 7.6 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index decreased 0.8 percent from the previous week. The four week moving average for the Index is up 0.21 percent.

The refinance share of mortgage activity increased to 81.1 percent of total applications from 80.5 percent the previous week.

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)

4.08

4.05*

0.51

0.44

Increased

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

4.30

4.29*

0.44

0.43

Increased

15-Year FRM

3.33*

3.33*

0.40

0.37

Unchanged

FHA 30-Year

3.87*

3.89

0.78

0.78

Decreased

5/1 ARM

2.93

2.91

0.42

0.40

Increased

*Survey record low

The adjustable-rate mortgage (ARM) share of activity decreased to 5.4 percent of total applications from 6.0 percent the previous week.

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

Sources:
Mortgage Bankers Association