Mortgage Applications Remain Steady

An increase in applications to refinance current mortgages gave a very slight boost to the total number of applications reported last week while applications for home purchases continued to slump according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 11th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 0.3 percent last week and follows a 1.3 percent increase the week before.

On an unadjusted basis, mortgage loan application volume increased by 0.4 percent from the previous week after increasing by one percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by five percent after posting a one percent decline the week before. The unadjusted Purchase Index was also five percent lower than the previous week and was one percent lower than during the same period last year. It was the third consecutive week that mortgage applications for home purchases fell below the previous year’s levels.

Refinance Applications:

The Refinance Index increased by three percent from the previous week for the third consecutive week. The refinance share of mortgage activity increased to 66 percent of total applications from 64 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)

4.46

4.42

0.31

0.44

Increased

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

4.51

4.45

0.15

0.21

Increased

15-Year FRM

3.53

3.52

0.31

0.34

Increased

FHA 30-Year

4.16

4.15

0.44

0.37

Increased

5/1 ARM

3.25

3.25

0.32

0.29

Increased

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