Mortgage Rates Rise, Applications Fall

November 1, 2012 (Chris Moore)

Mortgage applications continued to decline as long-term mortgage rates moved higher again last week slowing refinance activity while purchase activity still remained above last year’s levels according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 26th, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, fell for the third consecutive week declining a seasonally adjusted 4.8 percent from the previous week and follows a 12.0 percent decline the week before.

On an unadjusted basis, the Index decreased by five percent from the previous week and follows a two percent decline from the week before.

Purchase Applications:

The seasonally adjusted Purchase Index increased by one percent from the previous week after declining by eight percent the week before, while the unadjusted Purchase Index declined by 0.3 percent over the previous week. The unadjusted Purchase Index was six percent higher than at the same time a year ago.

Refinance Applications:

The Refinance Index fell by five percent from the previous week after moving downward by 13 percent the week before. The refinance share of mortgage activity fell to 80 percent of total applications, down from 81 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)

3.65

3.63

0.39

0.45

Increased

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

3.94

3.81

0.36

0.42

Increased

15-Year FRM

2.95

2.96

0.35

0.36

Decreased

FHA 30-Year

3.41

3.41

0.76

0.61

Increased

5/1 ARM

2.66

2.72

0.35

0.35

Decreased

The adjustable-rate mortgage (ARM) share of activity remained at about 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