Mortgage Applications Decline as Rates Remain Stable

Mortgage applications fell for only the second time this year with both purchase and refinance applications declining from the previous week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 8th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 6.4 percent and follows a 3.4 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume fell by 5 percent after increasing by 16 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index sled ten percent from last week after climbing by two percent the week before, while the unadjusted Purchase Index was four percent lower than the previous week. The unadjusted Purchase Index was still 15 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index decreased six percent from last week after increasing by four percent the week before. The refinance share of mortgage activity remained unchanged at 78 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)

3.75

3.73

0.43

0.43

Increased

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

3.98

3.96

0.36

0.38

Increased

15-Year FRM

3.01

3.00

0.28

0.33

Decreased

FHA 30-Year

3.53

3.53

0.39

0.38

Increased

5/1 ARM

2.66

2.72

0.31

0.30

Decreased

The adjustable-rate mortgage (ARM) share of activity remained around four percent of total applications.

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

Source:
Mortgage Bankers Association

Reported by Chris Moore