Mortgage Applications Increase for the First Time in Six Weeks

September 13, 2012 (Chris Moore)

Mortgage applications increased for the first time in six weeks as both purchase applications and refinance applications moved higher from the week before according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 7th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased for the first time in six weeks jumping a seasonally adjusted 11.1 percent from the previous week and follows a 2.5 percent decline the week before.

On an unadjusted basis, the Index fell by 12 percent from the previous week due to the day lost for Labor Day and follows a three percent decline from the week before.

The seasonal adjustments may overstate actual applications as lenders who utilize internet and consumer direct channels see little if any change in application activity due to holidays.

Purchase Applications:

The seasonally adjusted Purchase Index increased 8 percent from the previous week after decreasing by 0.8 percent the week before, while the unadjusted Purchase Index declined by over 15 percent, also due to the day lost for Labor Day.

Refinance Applications:

The Refinance Index increased 12 percent from the previous week after declining by three percent the week before. The refinance share of mortgage activity increased to 80 percent of total applications from 79 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)

3.75

3.78

0.44

0.37

Decreased

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

4.00

4.05

0.30

0.32

Decreased

15-Year FRM

3.07

3.10

0.38

0.37

Decreased

FHA 30-Year

3.50*

3.54

0.43

0.44

Decreased

5/1 ARM

2.63*

2.64

0.47

0.35

Increased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity dipped from five percent of total applications the week before to 4.5 percent last week.

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

Sources:
Mortgage Bankers Association