Mortgage Rates Hit Two Year High Sending Mortgage Applications Tumbling

Mortgage applications tumbled last week as mortgage rates approached two year highs according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 28th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined a seasonally adjusted 11.7 percent last week and follows a 3.0 percent decline from the previous week.

On an unadjusted basis, mortgage loan application volume decreased by 12 percent after declining by four percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index fell by three percent after posting a two percent increase the week before. The unadjusted Purchase Index was four percent lower than the previous week but was still 12 percent higher than during the same period last year.

Refinance Applications:

The Refinance Index was 16 percent lower than the previous week after declining by five percent the week before. The refinance share of mortgage activity fell to 64 percent of total applications from 67 percent the previous 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

4.46

0.43

0.35

Increased

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

4.68

4.52

0.38

0.28

Increased

15-Year FRM

3.64

3.55

0.44

0.43

Increased

FHA 30-Year

4.27

4.20

0.44

0.40

Increased

5/1 ARM

3.33

3.06

0.31

0.39

Increased

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