Mortgage Applications Decline as Interest Rates Jump to 18 Month High

Mortgage applications for home refinances tumbled as mortgage interest rates jumped to their highest levels in eighteen months according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 21st, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 3.0 percent last week and follows a 3.3 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume also declined by three percent after declining by four percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by two percent after posting a three percent decline the week before. The unadjusted Purchase Index was one percent higher than the previous week and was 16 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was five percent lower than the previous week after declining by three percent the week before. The refinance share of mortgage activity fell to 67 percent of total applications from 69 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)

4.46

4.17

0.35

0.41

Increased

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

4.52

4.23

0.28

0.34

Increased

15-Year FRM

3.55

3.30

0.43

0.39

Increased

FHA 30-Year

4.20

3.85

0.40

0.22

Increased

5/1 ARM

3.06

2.81

0.39

0.35

Increased

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