Mortgage Applications Resume Decline

Applications for home mortgages resumed their decline after last week’s modest increase despite a decline in mortgage interest rates according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 9th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined 4.7 percent last week and follows a 0.2 percent increase from the week before.

On an unadjusted basis, mortgage loan application volume fell five percent from the previous week after being unchanged the week before.

Purchase Applications:

The seasonally adjusted Purchase Index decreased five percent after posting a one percent gain the week before. The unadjusted Purchase Index was six percent lower than the previous week but was still four percent higher than during the same period last year.

Refinance Applications:

The Refinance Index declined by four percent from the previous week after having been unchanged the week before. Refinance activity continued to remain at two-year lows. The refinance share of mortgage activity remained at 63 percent of total applications for the fourth consecutive week.

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)

4.56

4.61

0.39

0.42

Decreased

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

4.57

4.64

0.25

0.34

Decreased

15-Year FRM

3.60

3.66

0.35

0.43

Decreased

FHA 30-Year

4.25

4.33

0.30

0.26

Decreased

5/1 ARM

3.36

3.39

0.37

0.37

Decreased

 
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