Mortgage Applications Fall Despite New Record Low Mortgage Rates

July 12, 2012 (Chris Moore)

Mortgage rates fell to new record lows across the board last week but it once again wasn’t enough to boost mortgage applications as applications for mortgage refinances fell for another week while purchase applications edged up slightly according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 6th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 2.1 percent from the previous week and follows a 6.7 percent decline last week.

On an unadjusted basis, the Index decreased by 22 percent from the previous week due to the day lost last week for the Fourth of July holiday.

Purchase Applications:

The seasonally adjusted Purchase Index increased three percent from the previous week, after increasing about one percent the week before.

The unadjusted Purchase Index was off by 17 percent compared to the previous week, also due to the Fourth of July holiday, and was three percent lower than the same week one year ago.

Refinance Applications:

The Refinance Index decreased three percent from the previous week. The refinance share of mortgage activity fell to 77 percent of total applications from 78 percent the previous 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)

3.79*

3.86

0.36

0.41

Decreased

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

4.05*

4.08

0.34

0.38

Decreased

15-Year FRM

3.15*

3.20

0.43

0.47

Decreased

FHA 30-Year

3.63*

3.69

0.36

0.50

Decreased

5/1 ARM

2.71*

2.76

0.36

0.45

Decreased

*Record Survey Low

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

Sources:
Mortgage Bankers Association