Mortgage Applications Post an Increase as Rates Continue to Fall

December 13, 2012 (Chris Moore)

Mortgage applications increased for the second consecutive week as three out of the five mortgage rate categories fell to record lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 6th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 6.2 percent from the previous week and follows a 4.5 percent increase the week before.

On an unadjusted basis, the Index increased by six percent from the previous week and follows a 36 percent increase from the week before due to the effects of the Thanksgiving holiday the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index climbed one percent from the previous week after climbing by 0.1 percent the week before, while the unadjusted Purchase Index increased by four percent over the previous week. The unadjusted Purchase Index was nine percent higher than at the same time a year ago.

Refinance Applications:

The Refinance Index increased eight percent from the previous week after posting an increase of six percent the week before. The refinance share of mortgage activity moved up to 84 percent of total applications from 83 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)

3.47*

3.52

0.36

0.41

Decreased

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

3.77

3.79

0.35

0.32

Decreased

15-Year FRM

2.85*

2.86

0.26

0.27

Decreased

FHA 30-Year

3.32*

3.34

0.51

0.62

Decreased

5/1 ARM

2.63

2.62

0.34

0.40

Decreased

*Record Survey Low

The adjustable-rate mortgage (ARM) share of activity remained around 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