Mortgage Applications Rebound Despite Rising Interest Rates

Mortgage applications for home purchases and refinances rebounded last week despite ever rising mortgage interest rates according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 7th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 5.0 percent last week and follows an 11.5 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume increased by 16 percent after falling by 20 percent the week before which included an adjustment due to the Memorial Day holiday.

Purchase Applications:

The seasonally adjusted Purchase Index increased by five percent after posting a two percent decline the week before. The unadjusted Purchase Index was 14 percent higher than the previous week and was six percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was five percent higher than the previous week after falling by 15 percent the week before. The refinance share of mortgage activity increased to 69 percent of total applications from 68 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)

4.15

4.07

0.48

0.35

Increased

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

4.24

4.20

0.32

0.28

Increased

15-Year FRM

3.32

3.23

0.38

0.38

Increased

FHA 30-Year

3.81

3.76

0.26

0.32

Increased

5/1 ARM

2.78

2.76

0.30

0.41

Decreased

 
The adjustable-rate mortgage (ARM) share of activity increased to 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