Refinances Push Mortgage Applications Higher

Applications to refinance existing home loans pushed overall mortgage applications higher despite a decline in applications to purchase homes according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending January 17th, 2014.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, increased 4.7 percent last week after increasing by 11.9 percent the previous week.

On an unadjusted basis, mortgage loan application volume increased by seven percent from the previous week.

Purchase Applications:

The seasonally adjusted Purchase Index fell by four percent after posting a 12 percent increase the week before. The unadjusted Purchase Index was two percent higher than the previous week but was still 15 percent lower than at the same time a year ago.

Applications to purchase homes have been at or lower than the previous year’s levels for the past sixteen weeks.

Refinance Applications:

The Refinance Index increased by ten percent from the previous week after posting an 11 percent increase the week before. The refinance share of mortgage activity increased from 62 percent of total applications the previous week to 64 percent last 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)

4.57

4.66

0.36

0.33

Decreased

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

4.57

4.58

0.18

0.24

Decreased

15-Year FRM

3.68

3.72

0.29

0.37

Decreased

FHA 30-Year

4.24

4.29

0.23

0.17

Decreased

5/1 ARM

3.28

3.28

0.37

0.47

Decreased

 
The adjustable-rate mortgage (ARM) share of activity fell to about seven 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