Mortgage Applications Increase as Interest Rate Tumble

More Americans applied for home loans last week as mortgage interest rates tumbled following the Federal Reserve’s decision to maintain current monetary policy according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 20th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 5.5 percent last week and follows an 11.2 percent increase the week before.

On an unadjusted basis, mortgage loan application volume increased five percent from the previous week after increasing by 23 percent the week before.

Purchase Applications:

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

Refinance Applications:

The Refinance Index increased by seven percent from the previous week after increasing by 23 percent the week before. The refinance share of mortgage activity remained at 61 percent of total applications.

HARP refinances grew to their highest level ever, taking up 41 percent of all refinances.

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)

4.62

4.75

0.41

0.39

Decreased

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

4.66

4.83

0.29

0.33

Decreased

15-Year FRM

3.68

3.81

0.28

0.34

Decreased

FHA 30-Year

4.32

4.50

0.37

0.41

Decreased

5/1 ARM

3.39

3.54

0.35

0.43

Decreased

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