Mortgage Loan Applications Continue Slide

Applications for home purchases and refinances declined this week as mortgage interest rates showed little movement according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 26th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 3.7 percent last week and follows a 1.2 percent decline from the previous week.

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

Purchase Applications:

The seasonally adjusted Purchase Index fell another three percent after posting a two percent decline the week before. The unadjusted Purchase Index was also three percent lower than the previous week but was still five percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was four percent lower than the previous week after declining by one 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 for the second consecutive 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)

4.58

4.58

0.38

0.40

Decreased

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

4.64

4.66

0.39

0.41

Decreased

15-Year FRM

3.67

3.63

0.40

0.35

Increased

FHA 30-Year

4.30

4.28

0.31

0.33

Increased

5/1 ARM

3.39

3.30

0.36

0.34

Increased

 
The adjustable-rate mortgage (ARM) share of activity fell to 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