Mortgage Applications Start December on an Up Note

Applications for mortgage loans increased during the first week of December according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 6th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 1.0 percent last week and follows a 12.8 percent decline the week before.

The previous week’s report included an adjustment for the Thanksgiving holiday.

On an unadjusted basis, mortgage loan application volume increased by forty-three percent from the previous week after falling by forty percent the week before.

Last week’s

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent after posting a four percent decline the week before. The unadjusted Purchase Index was thirty-seven percent higher than the previous week but was still ten percent lower than at the same time a year ago.

Applications to purchase homes have been at or lower than last year’s levels for the past ten weeks.

Refinance Applications:

The Refinance Index increased by two percent from the previous week after posting an eighteen percent decrease the week before. The refinance share of mortgage activity increased to 65 percent of total applications from 63 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)

4.61

4.51

0.26

0.38

Increased

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

4.59

4.49

0.15

0.24

Increased

15-Year FRM

3.66

3.56

0.31

0.32

Increased

FHA 30-Year

4.30

4.17

0.38

0.36

Increased

5/1 ARM

3.11

3.09

0.35

0.28

Increased

 
The adjustable-rate mortgage (ARM) share of activity moved to just over eight 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