Mortgage Applications Decline, Purchase Apps 12 Percent Behind Last Year

August 9, 2012 (Chris Moore)

Mortgage applications fell slightly last week as applications for both purchases and refinances dipped with purchase applications off 12 percent from year ago while refinance applications remained at elevated levels according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 3rd, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 1.8 percent from the previous week and follows a 0.2 percent gain last week.

On an unadjusted basis, the Index fell by two percent from last week and also follows a 0.2 gain from the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index fell one percent from the previous week, after declining two percent the week before, with the unadjusted Purchase Index suffering a decline of two percent and was 12 percent lower than during the same period a year ago..

Refinance Applications:

The Refinance Index decreased two percent from the previous week. The refinance share of mortgage activity remained at around 81 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)

3.76

3.75

0.46

0.51

Decreased

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

4.04

4.01

0.35

0.32

Increased

15-Year FRM

3.08

3.09

0.41

0.49

Decreased

FHA 30-Year

3.54

3.52*

0.49

0.55

Increased

5/1 ARM

2.72

2.73

0.40

0.41

Decreased

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity fell from 4.1 percent of total applications to 4.0 percent.

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

Sources:
Mortgage Bankers Association