Mortgage Applications Increase as Refinancing Demand Rises

Higher demand for mortgage refinancing helped push overall mortgage application activity up last week while the increase in FHA fees led to a decline in purchase applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 5th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 4.5 percent and follows a 4.0 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume increased by five percent after falling by four percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index declined one percent from last week after increasing by the same amount the week before. The unadjusted Purchase Index was also one percent lower than the previous week but was still three percent higher than during the same period last year.

Refinance Applications:

The Refinance Index climbed six percent from last week after falling by the same amount the week before. The refinance share of mortgage activity increased from 74 percent of total applications the previous week to 75 percent last 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)

3.68

3.76

0.43

0.43

Decreased

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

3.79

3.85

0.36

0.37

Decreased

15-Year FRM

2.92

2.98

0.34

0.36

Decreased

FHA 30-Year

3.43

3.48

0.52

0.38

Decreased

5/1 ARM

2.58

2.60

0.37

0.32

Decreased

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