Short Holiday Week Results in Mortgage Application Decline

As expected, mortgage loan application volume declined last week due to the Thanksgiving holiday according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 29th, 2013.

The Market Composite Index, which measures mortgage loan application volume including purchase applications and refinance applications, declined 12.8 percent last week and follows a 0.3 percent decline the week before.

On an unadjusted basis, mortgage loan application volume fell by forty percent from the previous week due to the Thanksgiving Holiday after increasing by nine percent the week before.

Purchase Applications:

The seasonally adjusted Purchase Index decreased by four percent after posting a 0.2 percent decline the week before. The unadjusted Purchase Index was thirty-six percent lower than the previous week and was thirty-seven percent lower than at the same time a year ago.

Refinance Applications:

The Refinance Index decreased by eighteen percent from the previous week after posting a 0.1 percent increase the week before. The refinance share of mortgage activity decreased to 63 percent of total applications from 66 percent the week before.

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)

4.51

4.48

0.38

0.31

Increased

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

4.49

4.48

0.24

0.15

Increased

15-Year FRM

3.56

3.52

0.32

0.31

Increased

FHA 30-Year

4.17

4.16

0.36

0.24

Increased

5/1 ARM

3.09

3.18

0.28

0.37

Decreased

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