Mortgage Apps Decline for a Second Week, Refi’s and Purchases Both Down

August 16, 2012 (Chris Moore)

Mortgage applications fell for a second consecutive week as both refinance and purchase applications fell despite mortgage rates that hovered near record lows according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 10th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, declined for a second consecutive week falling a seasonally adjusted 4.5 percent from the previous week and follows a 1.8 percent decline the week before.

On an unadjusted basis, the Index fell by 4.7 percent from the previous week which follows a two percent decline two weeks ago.

Purchase Applications:

The seasonally adjusted Purchase Index fell two percent from the previous week, after declining one percent the week before, while the unadjusted Purchase Index suffered a decline of three percent.

Refinance Applications:

The Refinance Index decreased five percent from the previous week after declining by two percent the week before. The refinance share of mortgage activity remained at around 81 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)

3.76

3.76

0.47

0.56

Increased

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

4.03

4.04

0.27

0.356

Decreased

15-Year FRM

3.12

3.08

0.40

0.41

Increased

FHA 30-Year

3.53

3.54

0.49

0.49

Decreased

5/1 ARM

2.73

2.72

0.36

0.40

Decreased

The adjustable-rate mortgage (ARM) share of activity remained at just over four percent of total applications.

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

Sources:
Mortgage Bankers Association