Mortgage Applications Decline Despite Lower Mortgage Rates

May 30, 2012 (Chris Moore)

Another round of record low mortgage rates wasn’t enough to boost mortgage activity last week as applications for both purchases and refinances declined according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 25th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, decreased a seasonally adjusted 1.3 percent from the previous week.

On an unadjusted basis, the Index decreased 1.6 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is up 3.23 percent.

Purchase Applications:

The seasonally adjusted Purchase Index decreased 0.60 percent from the previous week. The four week moving average is down 0.67 percent for the adjusted Purchase Index.

The unadjusted Purchase Index decreased 1.8 percent compared with the previous week and was 3.9 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index decreased 1.5 percent from the previous week. The four week moving average for the Refinance Index is up 4.36 percent.

The refinance share of mortgage activity remained unchanged at 76.6 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)

3.91*

3.93

0.46

0.39

Increased

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

4.23

4.25

0.40

0.42

Decreased

15-Year FRM

3.23*

3.26

0.39

0.42

Decreased

FHA 30-Year

3.70*

3.73

0.59

0.57

Decreased

5/1 ARM

2.77*

2.83

0.38

0.42

Decreased

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity decreased to 4.9 percent from 5.0 percent the previous week.

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

Sources:
Mortgage Bankers Association