Mortgage Applications Increase as Rates Sink

December 6, 2012 (Chris Moore)

Mortgage applications for both home purchases and refinances increased last week as three out of the five mortgage rate categories either matched or set record lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 30, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 4.5 percent from the previous week and follows a 0.9 percent decline the week before.

On an unadjusted basis, the Index increased by 49 percent from the previous week and follows a 24 percent decline from the week before due to the Thanksgiving holiday.

Purchase Applications:

The seasonally adjusted Purchase Index climbed 0.1 percent from the previous week after climbing by three percent the week before, while the unadjusted Purchase Index increased by 36 percent over the previous week, which was noticeably higher than the previous week due to the Thanksgiving holiday the week before. The unadjusted Purchase Index was 0.1 percent lower than at the same time a year ago.

Refinance Applications:

The Refinance Index increased six percent from the previous week after posting a decline of two percent the week before. The refinance share of mortgage activity moved up to 83 percent of total applications from 81 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)

3.52*

3.53

0.41

0.40

Decreased

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

3.79

3.75

0.32

0.31

Increased

15-Year FRM

2.86*

2.89

0.27

0.35

Decreased

FHA 30-Year

3.34*

3.36

0.62

0.65

Decreased

5/1 ARM

2.62

2.60

0.40

0.37

Increased

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity fell to three percent of total applications.

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

Source:
Mortgage Bankers Association