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Conventional Purchase Applications at 3-1/2 Year High
Mortgage applications for bothrnpurchasing a home and refinancing one increased during the week ended Aprilrn12. The Mortgage Bankers Associationrnreported that its Market Composite Index, a measure of total applicationrnvolume, increased 4.8 percent on a seasonally adjusted basis compared to thernweek ended April 5 and 5 percent on an unadjusted basis.</p
The Refinance Index increased 5 percentrnfrom the previous week and is at its highest level since mid-January. Refinancing held on to a 75 percent share ofrnrefinancing activity, the same as the previous week.</p
The seasonally adjusted Purchase Index</bwas up 4 percent from the previous week and the unadjusted level increased 3rnpercent. The adjusted index is at itsrnhighest level since May 2010 and the unadjusted level is 20 percent higher thanrnit was one year ago. Applications forrnconventional purchase mortgages were the highest than at any time since Octoberrn2009.</p
Purchase Index vs 30 Yr Fixed</b</p
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Refinance Index vs 30 Yr Fixed</p
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Averagerncontract interest rates decreased for all mortgage products and effective ratesrndeclined for all but the 30-year fixed-rate mortgage (FRM) with conformingrnbalances under $417,500. The contractrnrate for those loans averaged 3.67 percent with 0.50 point compared to 3.68rnpercent with 0.43 point the previous week.</p
The contract raternfor 30-year FRM with jumbo loan balances (greater than $417,500) decreasedrnto 3.77 percent from 3.79 percent,<bwith points decreasing to 0.27 from 0.36. FHA-backed 30-year FRM had an average rate ofrn3.37 percent, down 6 basis points from the previous week; points increased to 0.55rnfrom 0.52. Fifteen-year FRM rates averaged 2.91 percent compared to 2.92 percentrnand points were unchanged at 0.34. </p
The average contract interest rate for 5/1 adjustable raternmortgages (ARMs) decreased to 2.57 percentrnfrom 2.58 percent, with points decreasing to 0.29 from 0.37. Applications for all ARMs held steady at a 5rnpercent share. </p
The MBArnderives its application volume and interest rate data from a weekly survey ofrnmortgage bankers, commercial banks, and thrifts that it has conducted sincern1990 and that covers 75 percent of U.S. retail residential mortgagernapplications. Indices are based on applicationsrnvolume on March 16 1990 and interest rates on loans with an 80 percentrnloan-to-value ratio. Points include thernapplication fee. </p
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