Mortgage Applications Decline as Long Term Rates Keep Rising

Mortgage applications for both home purchases and refinances declined last week as interest rates for 30-year fixed mortgages continued to climb according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 14th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 3.3 percent last week and follows a 5.0 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume decreased by four percent after increasing by 16 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index decreased by three percent after posting a five percent increase the week before. The unadjusted Purchase Index was four percent lower than the previous week but was still 12 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was three percent lower than the previous week after increasing by five percent the week before. The refinance share of mortgage activity remained at 69 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)

4.17

4.15

0.41

0.48

Increased

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

4.23

4.25

0.34

0.32

Decreased

15-Year FRM

3.30

3.32

0.39

0.38

Decreased

FHA 30-Year

3.85

3.81

0.22

0.26

Increased

5/1 ARM

2.81

2.78

0.35

0.30

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