Mortgage Applications Dip Slightly

Mortgage applications dipped slightly last week as volume for both purchase applications and refinance applications held fairly steady from the previous week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 18th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, decreased 0.6 percent last week and follows a 0.3 percent increase the week before.

On an unadjusted basis, mortgage loan application volume fell by one percent from the previous week after increasing by 0.4 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent after posting a five percent decline the week before. The unadjusted Purchase Index was also one percent lower than the previous week but was still two percent lower than during the same period last year. It was the fourth consecutive week that mortgage applications for home purchases fell below the previous year’s levels.

Refinance Applications:

The Refinance Index declined by one percent from the previous week after posting a three percent increase the week before. The refinance share of mortgage activity fell to 65 percent of total applications from 66 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)

4.39

4.46

0.41

0.31

Decreased

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

4.43

4.51

0.26

0.15

Decreased

15-Year FRM

3.51

3.53

0.30

0.31

Decreased

FHA 30-Year

4.15

4.16

0.27

0.44

Decreased

5/1 ARM

3.25

3.25

0.26

0.32

Decreased

 
The adjustable-rate mortgage (ARM) share of activity moved up to seven 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