Mortgage Applications Fall as Interest Rates Remain Unchanged

November 29, 2012 (Chris Moore)

Applications for home mortgages fell for the sixth time in the last seven weeks as an increase in applications for home purchases was offset by a decline in applications for refinances according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 23, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 0.9 percent from the previous week and follows a 2.2 percent decline the week before.

On an unadjusted basis, the Index declined by 24 percent from the previous week on account of the Thanksgiving Holiday and follows a 13 percent decline from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index climbed three percent from the previous week after climbing by a similar amount the week before, while the unadjusted Purchase Index declined by 24 percent over the previous week, also due to the Thanksgiving holiday. The unadjusted Purchase Index was eight percent higher than at the same time a year ago.

Refinance Applications:

The Refinance Index declined two percent from the previous week after posting a decline of three percent the week before. The refinance share of mortgage activity remained unchanged at 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)

3.53

3.54

0.40

0.40

Decreased

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

3.75

3.76

0.31

0.40

Decreased

15-Year FRM

2.89

2.89

0.35

0.25

Increased

FHA 30-Year

3.36

3.36

0.65

0.63

Increased

5/1 ARM

2.60

2.62

0.37

0.37

Decreased

The adjustable-rate mortgage (ARM) share of activity remained at about four percent of total applications.

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

Source:
Mortgage Bankers Association