Mortgage Applications Decline as Mortgage Rates Keep Rising

Applications for mortgages continued to decline as mortgage interest rates reached their highest levels in a year according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 31st, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 11.5 percent last week and follows an 8.8 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume fell by 20 percent after falling by nine percent the week before. The larger than usual decline was a result of one less business day due to the Memorial Day holiday.

Purchase Applications:

The seasonally adjusted Purchase Index decreased by two percent after posting a three percent increase the week before. The unadjusted Purchase Index was 13 percent lower than the previous week but was still 14 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was 15 percent lower than the previous week after falling by 12 percent the week before. The refinance share of mortgage activity fell to 68 percent of total applications from 71 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)

4.07

3.90

0.35

0.39

Increased

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

4.20

4.07

0.28

0.27

Increased

15-Year FRM

3.23

3.10

0.38

0.30

Increased

FHA 30-Year

3.76

3.62

0.32

0.27

Increased

5/1 ARM

2.76

2.60

0.41

0.24

Increased

 
The adjustable-rate mortgage (ARM) share of activity increased to six 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