Mortgage Applications Fall from Last Week

Mortgage activity fell slightly last week as declines in purchase and refinance applications contributed to the overall decline in activity according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 14th, 2014.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, fell a seasonally adjusted 1.2 percent last week after declining by 2.1 percent the previous week.

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

Purchase Applications:

The seasonally adjusted Purchase Index declined by one percent after posting the same one percent decrease the week before. The unadjusted Purchase Index was one percent higher than the previous week but was still 17 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 twenty-four weeks.

Refinance Applications:

The Refinance Index declined by one percent from the previous week after posting a three percent decline the week before. The refinance share of mortgage activity fell to 56.5 percent of total applications from 57 percent the week before. Refinancing activity is at its lowest level in five years.

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)

4.50

4.52

0.26

0.29

Decreased

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

4.39

4.41

0.19

0.20

Decreased

15-Year FRM

3.52

3.53

0.25

0.28

Decreased

FHA 30-Year

4.13

4.18

0.18

0.21

Decreased

5/1 ARM

3.09

3.18

0.38

0.36

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