Refinance Applications Push Mortgage Demand Up

April 18, 2012 (Chris Moore)

Mortgage application volume increased last week as refinance applications jumped up after eight weeks of declines while purchase applications tumbled according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 13, 2012.

The Market Composite Index, a measure of mortgage loan application volume including purchase applications and refinance applications, increased a seasonally adjusted 6.9 percent from the previous week.

On an unadjusted basis, the Index increased 6.5 percent from the previous week. The four week moving average for the seasonally adjusted Market Index is up 1.60 percent.

Purchase Applications:

The seasonally adjusted Purchase Index fell 11.2 percent from the previous week. The four week moving average is down 0.52 percent for the adjusted Purchase Index.

The unadjusted Purchase Index decreased 10.4 percent compared with the previous week and was 13.9 percent lower than the same week a year ago.

Refinance Applications:

The Refinance Index increased 13.5 percent from the previous week, the first increase for the Index in nine weeks. The four week moving average for the Index is up 2.36 percent.

The refinance share of mortgage activity increased to 75.2 percent of total applications from 70.5 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)

4.05

4.10

0.45

0.43

Decreased

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

4.36

4.43

0.36

0.36

Decreased

15-Year FRM

3.33

3.37

0.41

0.37

Decreased

FHA 30-Year

3.83

3.87

0.61

0.55

Decreased

5/1 ARM

2.83

2.89

0.35

0.38

Decreased

The adjustable-rate mortgage (ARM) share of activity fell to 5.3 percent from 5.5 percent the previous week.

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

Sources:
Mortgage Bankers Association