Mortgage Applications Fall Slightly as Mortgage Rates Pull Back

Mortgage applications continued their slide last week despite a slight decrease in mortgage rates as a drop in refinance applications outweighed a slight increase in purchase applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 12th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 2.6 percent last week and follows a 4.0 percent decline from the previous week. An adjustment for the 4th of July holiday was included in the previous week’s survey.

On an unadjusted basis, mortgage loan application volume increased by 22 percent after declining by 23 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent after posting a three percent decline the week before. The unadjusted Purchase Index was 26 percent higher than the previous week and was five percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was four percent lower than the previous week after declining by the same amount the week before. Refinance activity is at a two-year low. The refinance share of mortgage activity fell to 63 percent of total applications from 64 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)

4.68

4.68

0.42

0.46

Decreased

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

4.81

4.86

0.40

0.37

Decreased

15-Year FRM

3.70

3.76

0.38

0.41

Decreased

FHA 30-Year

4.38

4.37

0.22

0.39

Decreased

5/1 ARM

3.39

3.40

0.37

0.54

Decreased

 
The adjustable-rate mortgage (ARM) share of activity remained at about seven 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