Mortgage Purchase Applications at Highest Level Since August

November 23, 2011 (Chris Moore)

Purchase applications increased to their highest levels since August while refinance applications were at their lowest level since the end of July according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 18, 2011.

The Market Composite Index, a measure of mortgage loan application volume which includes purchase applications and refinance applications, decreased a seasonally adjusted 1.2 percent from the previous week.

On an unadjusted basis, the Index increased 8.6 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is down 0.42 percent.

Purchase Applications:

The seasonally adjusted Purchase Index increased 8.2 percent from the previous week and is at its highest level since August 12, 2011. The four week moving average is up 3.08 percent for the adjusted Purchase Index.

The unadjusted Purchase Index increased 15.2 percent compared with the previous week and was 4.8 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index decreased 4.0 percent from the previous week and is at its lowest level since July 29, 2011. The four week moving average for the Index is down 1.39 percent.

The refinance share of mortgage activity declined to 75.9 percent of total applications from 77.3 percent the previous week.

The government share of refinance applications was at its highest level since April 15, 2011, accounting for 13.0 percent of all refinance applications, up from 11.8 percent the previous week. In the month of October, the government share of refinance activity accounted for 12.3 percent of all applications, the highest level since the MBA began tracking this information in January 2011.

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)

4.23

4.23

0.46

0.52

Decreased

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

4.59

4.56

0.40

0.46

Increased

15-Year FRM

3.58

3.54

0.53

0.47

Increased

FHA 30-Year

4.05

4.03

0.55

0.59

Increased

5/1 ARM

3.00

3.01

0.49

0.49

Decreased

The adjustable-rate mortgage (ARM) share of activity decreased to 5.7 percent of total applications from 6.1 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: home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate

Sources:
Mortgage Bankers Association