Mortgage Applications Slip

October 18, 2012 (Chris Moore)

Mortgage applications slipped again last week as refinance activity continued to weaken while applications for home purchases increased slightly for a second week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 12th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, declined for a second consecutive week falling a seasonally adjusted 4.2 percent from the previous week and follows a 1.2 percent decline the week before.

On an unadjusted basis, the Index decreased by 14 percent from the previous week and follows a one percent decline from the week before. The unadjusted Index was 12 percent higher than the same week a year ago.

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent from the previous week after increasing by two percent the week before, while the unadjusted Purchase Index fell by nine percent over the previous week.

Refinance Applications:

The Refinance Index fell by five percent from the previous week after moving downward by two percent the week before. The refinance share of mortgage activity fell to 82 percent of total applications, down from 83 percent the previous 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)

3.57

3.56

0.44

0.39

Increased

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

3.81

3.74*

0.42

0.40

Increased

15-Year FRM

2.87*

2.88

0.39

0.40

Decreased

FHA 30-Year

3.34*

3.34*

0.82

0.71

Increased

5/1 ARM

2.59*

2.60

0.35

0.36

Decreased

*Survey Record Low

The adjustable-rate mortgage (ARM) share of activity moved back up to four percent of total applications.

This week’s survey included an adjustment for the Columbus Day holiday.

Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
Mortgage Bankers Association