Mortgage Applications Fall Despite Record Low Rates

April 25, 2012 (Chris Moore)

Mortgage application volume fell last week as refinance applications fell for the ninth time in the last ten weeks despite record low rates for 30-year and 15-year fixed rate mortgages according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 20, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, decreased a seasonally adjusted 3.8 percent from the previous week.

On an unadjusted basis, the Index fell 3.3 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is up 1.23 percent.

Purchase Applications:

The seasonally adjusted Purchase Index increased 2.7 percent from the previous week. The four week moving average is down 0.67 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 3.6 percent compared with the previous week and was unchanged from the same week a year ago.

Refinance Applications:

The Refinance Index fell 5.6 percent from the previous week. Both the Conventional and Government Refinance Indices fell this week with the Conventional Refinance Index falling 6.1 percent and the Government Refinance Index dipping 2.1 percent. The four week moving average for the Refinance Index is up 1.92 percent.

The refinance share of mortgage activity decreased to 73.4 percent of total applications from 75.2 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)

4.04*

4.05

0.40

0.45

Decreased

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

4.27*

4.36

0.44

0.36

Decreased

15-Year FRM

3.32*

3.33

0.41

0.41

Decreased

FHA 30-Year

3.81

3.83

0.52

0.61

Decreased

5/1 ARM

2.81

2.83

0.37

0.35

Decreased

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity increased to 5.6 percent from 5.3 percent the previous week.

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

Sources:
Mortgage Bankers Association