Mortgage Applications Decline for Fourth Consecutive Week

July 13, 2011 (Chris Moore)

The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending July 8, 2011. The Market Composite Index, a measure of mortgage loan application volume, declined for the fourth straight week as mortgage applications decreased 5.1 percent led by a drop in refinance applications which are 42.1 percent lower than a year ago.

On an unadjusted basis, the Index decreased 24.0 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 4.7 percent.

The seasonally adjusted Purchase Index decreased 2.6 percent from one week earlier. The four week moving average is down 1.0 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index decreased 21.9 percent compared with the previous week, and is 0.2 percent lower than the same week one year ago.

The Refinance Index decreased 6.2 percent from the previous week. The four week moving average is down 6.3 percent. The Refinance Index is 42.1 percent lower than what it was a year ago.

The refinance share of mortgage activity decreased to 65.6 percent of total applications from 66.4 percent last week.

The adjustable-rate mortgage (ARM) share of activity decreased to 5.5 percent from 6.1 percent the previous week.

The results of this week’s survey include an adjustment for the Fourth of July holiday.

The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.55 percent from 4.69 percent last week, with points increasing to 0.99 from 0.90 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.68 percent from 3.79 percent last week, with points increasing to 1.10 from 0.88 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

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

Sources:
MBA