Mortgage Applications Rebound after Previous Week’s Plunge

Applications for home loans rebounded last week following the previous week’s plunge according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 13th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 11.2 percent last week and follows a 13.5 percent decline the week before. The previous week’s survey included an adjustment for the Labor Day holiday.

On an unadjusted basis, mortgage loan application volume increased 23 percent from the previous week after declining by the same amount the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by three percent after posting a 2.7 percent decline the week before. The unadjusted Purchase Index was 12 percent higher than the previous week but was only one percent higher than during the same period last year.

Refinance Applications:

The Refinance Index increased by 23 percent from the previous week after falling by 28 percent the week before. The refinance share of mortgage activity increased to 61 percent of total applications from 57 percent the week before, a reversal of the previous week.

HARP refinances hit their highest level ever, taking up 40 percent of all refinances.

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)

4.75

4.80

0.39

0.46

Decreased

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

4.83

4.84

0.33

0.41

Decreased

15-Year FRM

3.81

3.83

0.34

0.42

Decreased

FHA 30-Year

4.50

4.56

0.41

0.28

Decreased

5/1 ARM

3.54

3.59

0.43

0.43

Decreased

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