Mortgage Purchase Applications Highest Since April 2011

(January 17, 2013) Mortgage applications increased by double digits for the second consecutive week as purchase applications were at their highest level in almost two years according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January11th 2013.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 15.2 percent and follows an 11.7 percent increase from the previous week, which included an adjustment for the New Years Day holiday.

On an unadjusted basis, the Index increased by 45 percent from the previous week which was also affected by the New Year’s Holiday.

Purchase Applications:

The seasonally adjusted Purchase Index increased 13 percent from the previous week after climbing by ten percent the week before, while the unadjusted Purchase Index was 47 percent higher than the holiday-filled previous week. The unadjusted Purchase Index was five percent higher than during the same period last year.

Refinance Applications:

The Refinance Index increased 15 percent from the previous week after increasing by 12 percent the previous week. The refinance share of mortgage activity remained unchanged from last week at 82 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)

3.61

3.61

0.38

0.41

Decreased

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

3.88

3.78

0.38

0.38

Increased

15-Year FRM

2.88

2.88

0.27

0.39

Decreased

FHA 30-Year

3.39

3.35

0.58

0.69

Increased

5/1 ARM

2.66

2.64

0.34

0.47

Increased

The adjustable-rate mortgage (ARM) share of activity remained around three percent of total applications.

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

Source:
Mortgage Bankers Association

Reported by Chris Moore