Mortgage Applications Decline as Mortgage Rates Climb

Mortgage applications declined last week as mortgage rates moved higher according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 17th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 7.3 percent last week and follows a 7.0 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume fell by seven percent after increasing by the same amount the week before.

Purchase Applications:

The seasonally adjusted Purchase Index declined by four percent after posting a two percent increase the week before. The unadjusted Purchase Index was also 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 eight percent lower than the previous week after rising by the same amount the week before. The refinance share of mortgage activity remained at 76 percent of total applications for the second consecutive 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)

3.67

3.59

0.41

0.33

Increased

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

3.87

3.79

0.25

0.20

Increased

15-Year FRM

2.88

2.81*

0.31

0.29

Increased

FHA 30-Year

3.43

3.35

0.16

0.57

Decreased

5/1 ARM

2.55

2.53*

0.23

0.14

Increased

*Survey record low

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