Mortgage Applications Still Fall Despite Rate Drop

Mortgage interest rates fell for a second consecutive week but it still wasn’t enough to perk up mortgage activity as applications still suffered a modest decline according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 19th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 1.2 percent last week and follows a 2.6 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume decreased by one percent after Increasing by 22 percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index declined by two percent after posting a one percent increase the week before. The unadjusted Purchase Index was two percent lower than the previous week but was still six percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was one percent lower than the previous week after declining by four percent the week before. Refinance activity remains at a two-year low. The refinance share of mortgage activity remained at 63 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)

4.58

4.68

0.40

0.42

Decreased

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

4.66

4.81

0.41

0.40

Decreased

15-Year FRM

3.63

3.70

0.35

0.38

Decreased

FHA 30-Year

4.28

4.38

0.33

0.22

Decreased

5/1 ARM

3.30

3.39

0.34

0.37

Decreased

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