Mortgage Applications Jump on New Record Low Rates

October 4, 2012 (Chris Moore)

Another round of record low interest rates jump started mortgage applications last week as applications to refinance a current mortgage climbed twenty percent according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 28th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased for the second consecutive week climbing a seasonally adjusted 16.6 from the previous week and follows a 2.8 percent increase from the week before. Application volume was its highest level in three years.

On an unadjusted basis, the Index increased by 17 percent from the previous week and follows a 3 percent increase from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by four percent from the previous week after increasing by one percent the week before, while the unadjusted Purchase Index increased by four percent over the previous week.

Refinance Applications:

The Refinance Index increased 20 percent from the previous week after increasing by three percent the week before. The refinance share of mortgage activity increased to 83 percent of total applications from 81.2 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)

3.53*

3.63

0.35

0.41

Decreased

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

3.82*

3.87

0.32

0.33

Decreased

15-Year FRM

2.90*

2.98

0.27

0.41

Decreased

FHA 30-Year

3.37*

3.44

0.36

0.41

Decreased

5/1 ARM

2.59*

2.61

0.34

0.41

Decreased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity remained at about four percent of total applications.

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

Sources:
Mortgage Bankers Association