Mortgage Applications Level Off

October 11, 2012 (Chris Moore)

Mortgage applications leveled-off last week after their big jump the previous week as refinance applications edged slightly lower while applications for home purchases moved slightly higher according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 5th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, ended its two-week climb by falling a seasonally adjusted 1.2 percent from the previous week and follows a 16.6 percent increase the week before.

On an unadjusted basis, the Index decreased by one percent from the previous week and follows a 17 percent increase from the week before. The unadjusted Index was 12 percent higher than the same week a year ago.

Purchase Applications:

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

Refinance Applications:

The Refinance Index fell by two percent from the previous week after increasing by 20 percent the week before. The refinance share of mortgage activity remained unchanged from last week at 83 percent of total applications.

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)

3.56

3.53*

0.39

0.35

Increased

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

3.74*

3.82

0.40

0.32

Decreased

15-Year FRM

2.88*

2.90

0.40

0.27

Increased

FHA 30-Year

3.34*

3.37

0.71

0.36

Increased

5/1 ARM

2.60

2.59*

0.36

0.34

Increased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity fell from four percent to 3.8 percent of total applications.

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

Sources:
Mortgage Bankers Association