Mortgage Applications Decrease as Rates Reach Two-year High in Latest MBA Weekly Survey
Mortgage applications decreased 11.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 28, 2013.
Washington, D.C.—Mortgage applications decreased 11.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 28, 2013.
The Market Composite Index, a measure of mortgage loan application volume, decreased 11.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 12 percent compared with the previous week. The Refinance Index decreased 16 percent from the previous week and is at its lowest level since July 2011. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index decreased 4 percent compared with the previous week and was 12percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to64 percent of total applications, the lowest level since May 2011, from 67 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to8percent of total applications and is at its highest level since July 2008. The HARP share of refinance applications increased to 34 percent from 30 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.58 percent, the highest rate since July 2011, from 4.46 percent, with points increasing to 0.43from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.68 percent, the highest rate since October 2011, from 4.52 percent, with points increasing to 0.38 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.27 percent ,the highest rate since September 2011, from 4.20 percent, with points increasing to 0.44 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.64 percent, the highest rate since July 2011, from 3.55 percent, with points increasing to 0.44 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.33 percent, the highest rate since July 2011, from3.06 percent, with points decreasing to 0.31 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
