Mortgage Applications Fall Slightly, Rates Hit New Lows

September 20, 2012 (Chris Moore)

Mortgage applications moved slightly lower last week, the sixth decline in the last seven weeks, while mortgage rates in most categories fell to new lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 13th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, declined for the sixth time in the last seven weeks falling a seasonally adjusted 0.2 from the previous week and follows an 11.1 percent increase the week before.

On an unadjusted basis, the Index increased by 24 percent from the previous week and follows a 12 percent decline from the week before which included the Labor Day holiday.

Purchase Applications:

The seasonally adjusted Purchase Index declined by four percent from the previous week after increasing by eight percent the week before, while the unadjusted Purchase Index increased by 18 percent over the previous week which had also included the Labor Day holiday.

Refinance Applications:

The Refinance Index increased one percent from the previous week after increasing by 12 percent the week before. The refinance share of mortgage activity increased to 81 percent of total applications from 80 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)

3.72*

3.75

0.45

0.34

Decreased

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

3.99

4.00

0.35

0.30

Increased

15-Year FRM

3.03*

3.07

0.39

0.38

Decreased

FHA 30-Year

3.50*

3.50*

0.57

0.43

Increased

5/1 ARM

2.61*

2.63

0.32

0.47

Decreased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity increased from 4.5 percent of total applications the week before to five percent last week.

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

Sources:
Mortgage Bankers Association