Mortgage Applications Slide as Refinance Requests Drop

Mortgage applications fell for the third time in four weeks as a decline in refinance applications overshadowed an increase in purchase applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 29th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 4.0 percent and follows a 7.7 percent increase from the previous week.

On an unadjusted basis, mortgage loan application volume fell four percent after climbing by eight percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent from last week after increasing by seven percent the week before, while the unadjusted Purchase Index was two percent higher than the previous week. The unadjusted Purchase Index was four percent higher than during the same period last year.

According to Mike Fratantoni, Vice President of Research and Economics, the latest uptick in purchase applications is likely related to the increase in FHA premiums that took effect on April 1st.

Refinance Applications:

The Refinance Index fell six percent from last week after climbing by the eight percent the week before. The refinance share of mortgage activity fell from 75 percent of total applications the previous week to 74 percent last 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)

3.76

3.79

0.43

0.44

Decreased

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

3.85

3.90

0.37

0.42

Decreased

15-Year FRM

2.98

3.02

0.36

0.42

Decreased

FHA 30-Year

3.48

3.51

0.38

0.43

Decreased

5/1 ARM

2.60

2.58

0.32

0.32

Increased

The adjustable-rate mortgage (ARM) share of activity remained at about five 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