Mortgage Applications Start the Year on a Positive Note

January 10, 2013 (Chris Moore)

Mortgage applications increased for the first time in three weeks as applications for both home purchases and refinances posted positive gains according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 4th 2013.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 11.7 percent from the previous week and includes an adjustment for the News Year Day holiday.

On an unadjusted basis, the Index increased by 49 percent from the previous week which included the Christmas Day holiday.

Purchase Applications:

The seasonally adjusted Purchase Index was ten percent higher than the previous week but was down two percent from two weeks ago, the last full week prior to the holidays, while the unadjusted Purchase Index increased by 49 percent over the previous week. The unadjusted Purchase Index was eight percent lower than during the same period last year.

Refinance Applications:

The Refinance Index increased 12 percent from the previous week but was just under one percent lower than two weeks ago. The refinance share of mortgage remained unchanged from last week at 82 percent of total applications.

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)

3.61

3.52

0.41

0.48

Increased

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

3.78

3.75

0.38

0.30

Increased

15-Year FRM

2.88

2.86

0.39

0.27

Increased

FHA 30-Year

3.35

3.34

0.69

0.61

Increased

5/1 ARM

2.64

2.65

0.37

0.42

Decreased

The adjustable-rate mortgage (ARM) share of activity remained around three percent of total applications.

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

Source:
Mortgage Bankers Association