Mortgage Applications Up from Last Week, Interest Rates Unchanged

October 26, 2011 (Chris Moore)

Mortgage applications for both home purchases and refinances increased slightly from last week as mortgage interest rates remained virtually unchanged from the previous week according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 21, 2011.

The Market Composite Index, a measure of mortgage loan application volume, which includes purchase applications and refinance applications, increased a seasonally adjusted 4.9 percent from the previous week.

On an unadjusted basis, the Index increased 4.8 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 3.61 percent.

Purchase Applications:

The seasonally adjusted Purchase Index increased 6.4 percent from the previous week. The four week moving average is down 0.71 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 6.1 percent compared with the previous week and was 2.7 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index increased 4.4 percent from the previous week while the four week moving average for the Index is down 4.41 percent.

The refinance share of mortgage activity declined to 77.3 percent of total applications from 77.6 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)

4.33

4.33

0.47

0.48

Decreased

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

4.68

4.64

0.42

0.45

Increased

15-Year FRM

3.62

3.61

0.45

0.43

Increased

FHA 30-Year

4.11

4.12

0.61

0.53

Increased

5/1 ARM

3.11

3.08

0.50

0.48

Increased

The adjustable-rate mortgage (ARM) share of activity increased to 5.9 percent of total applications from 5.8 percent the previous week.

This week’s results are based on an enhanced sample which captures more than 75% of all retail and consumer direct channel mortgage applications, compared to 50% previously.

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

Sources:
Mortgage Bankers Association