Mortgage Applications Dip Slightly

Mortgage application volume dipped slightly last week as refinance applications held steady from the previous week while purchase applications posted a decline according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending February 7th, 2014.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 2.0 percent last week after increasing by 0.4 percent the previous week.

On an unadjusted basis, mortgage loan application volume increased by 0.3 percent from the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index declined by five percent after posting a four percent decrease the week before. The unadjusted Purchase Index was one percent higher than the previous week but was still 13 percent lower than at the same time a year ago.

Applications to purchase homes have been at or lower than the previous year’s levels for the past nineteen weeks.

Refinance Applications:

The Refinance Index declined by 0.2 percent from the previous week after posting a three percent increase the week before. The refinance share of mortgage activity remained at 62 percent of total applications for the second consecutive week.

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)

4.45

4.47

0.34

0.25

Increased

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

4.40

4.42

0.14

0.11

Decreased

15-Year FRM

3.49

3.53

0.25

0.28

Decreased

FHA 30-Year

4.13

4.12

0.10

0.15

Decreased

5/1 ARM

3.11

3.15

0.31

0.41

Decreased

 
The adjustable-rate mortgage (ARM) share of activity remained at about eight 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