Mortgage Applications Down Slightly

Falling mortgage interest rates led to a boost in refinance applications last week while the fading summer selling season resulted in fewer purchase applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 27th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, fell 0.4 percent last week and follows a 5.5 percent increase the week before.

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

Purchase Applications:

The seasonally adjusted Purchase Index fell by six percent after posting a seven percent increase the week before. The unadjusted Purchase Index was also six percent lower than the previous week and was three percent lower than during the same period last year.

Refinance Applications:

The Refinance Index increased by three percent from the previous week after increasing by seven percent the week before. The refinance share of mortgage activity increased to 63 percent of total applications from 61 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)

4.49

4.62

0.34

0.41

Decreased

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

4.53

4.66

0.22

0.29

Decreased

15-Year FRM

3.55

3.68

0.33

0.28

Decreased

FHA 30-Year

4.21

4.35

0.37

0.37

Decreased

5/1 ARM

3.26

3.39

0.28

0.35

Decreased

 
The adjustable-rate mortgage (ARM) share of activity fell to six 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