Mortgage Applications Up On Refinance Boost

Mortgage applications for home purchases were below year ago levels for the second consecutive week but falling interest rates gave a boost to refinance applications again last week leading to an overall increase in mortgage applications according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 4th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 1.3 percent last week and follows a 0.4 percent decline the week before.

On an unadjusted basis, mortgage loan application volume increased by one percent from the previous week after declining by one percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by one percent after posting a six percent decline the week before. The unadjusted Purchase Index was also one percent lower than the previous week and was six percent lower than during the same period last year.

Refinance Applications:

The Refinance Index increased by three percent from the previous week after increasing by the same amount the week before. The refinance share of mortgage activity increased to 64 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)

4.42

4.49

0.44

0.34

Decreased

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

4.45

4.53

0.21

0.22

Decreased

15-Year FRM

3.52

3.55

0.34

0.33

Decreased

FHA 30-Year

4.15

4.21

0.37

0.35

Decreased

5/1 ARM

3.25

3.26

0.29

0.28

Decreased

 
The adjustable-rate mortgage (ARM) share of activity remained at around six 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