Mortgage Applications for Home Purchases Fall

Applications for home purchases fell last week despite near record low mortgage rates according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 26th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 1.8 percent last week and follows a modest 0.2 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume increased by two percent after increasing by one percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by three percent from last week after posting a 0.3 percent gain the week before. The unadjusted Purchase Index was 0.5 percent lower than the previous week but was still 13 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was three percent higher than last week after rising by 0.3 percent the week before. For the third consecutive week, the refinance share of mortgage activity remained unchanged from the previous week at 75 percent of total applications.

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)

3.60

3.65

0.30

0.41

Decreased

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

3.80

3.75

0.29

0.37

Increased

15-Year FRM

2.84

2.89

0.26

0.40

Decreased

FHA 30-Year

3.34

3.37

0.37

0.64

Decreased

5/1 ARM

2.55

2.62

0.22

0.21

Decreased

 
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, FHA mortgage rates

Source:
Mortgage Bankers Association

Reported by Chris Moore