Mortgage Applications Hold Steady from Previous Week

September 21, 2011 (Chris Moore)

Applications for home purchases declined last week while refinance applications increased slightly as homeowners continued to take advantage of low interest rates according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 16, 2011.

The Market Composite Index, a measure of mortgage loan application volume, which includes purchase applications and refinance applications, increased a seasonally adjusted 0.6 percent from the previous week.

On an unadjusted basis, the Index increased 25.2 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 3.15 percent.

The unadjusted figures do not compensate for the Labor Day holiday in the previous survey.

Purchase Applications:

The seasonally adjusted Purchase Index decreased 4.7 percent from the previous week. The four week moving average is down 0.54 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 17.1 percent compared with the previous week.

Refinance Activity:

The Refinance Index increased 2.2 percent from the previous week. The four week moving average is down 3.91 percent.

The refinance share of mortgage activity increased to 78.3 percent of total applications from 76.8 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)

4.29

4.29

0.41

.038

Increased

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

4.55

4.57

0.46

0.42

Increased

15-Year FRM

3.46

3.52

0.45

0.38

Decreased

FHA 30-Year

4.07

4.08

0.51

0.48

Increased

5/1 ARM

2.96

2.99

0.49

0.46

Increased

The adjustable-rate mortgage (ARM) share of activity decreased to 6.7 percent of total applications from 7.3 percent the previous week.

This week’s results are based on an enhanced sample which captures more than 75% of all retail and consumer direct channel mortgage applications, compared to 50% previously.

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

Sources:
Mortgage Bankers Association