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Mortgage Application Volume Continues to Slide

by devteam October 1st, 2014 | Share

Last week was another down week forrnmortgage applications according to the Mortgage Bankers Association (MBA).  Its Weekly Mortgage Applications Survey data forrnthe week ended September 26 showed a 0.2 percent decrease in applications asrnreflected in its seasonally adjusted Market Composite Index.  Compared with the previous week the declinernin the unadjusted index was twice as large.rn</p

MBA’s Refinance Index was down 0.3rnpercent from the week ended September 19 and applications for refinancingrncomprised 56 percent of total loan applications.  That share was unchanged from the previousrnweek.</p

Refinance Index vs 30 Yr Fixed</p

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Applications for home purchases werernunchanged from the previous week on a seasonally adjusted basis but were down 1rnpercent on an unadjusted basis.  The unadjustedrnPurchase Index was 11 percent lower than during the same week in 2013.  The seasonally adjusted conventional purchasernindex increased 1.3 percent to the highest level since July.</p

Purchase Index vs 30 Yr Fixed</b</p

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Applicationrnvolume slipped despite lower contract and effective interest rates for allrnfixed rate mortgages (FRM). The average contract rate for 30-year conventionalrnFRM, those with balances of $417,000 or less, was 4.33 percent with 0.31rnpoint.  The previous week the rate wasrn4.39 percent with 0.35 point.  </p

Jumborn30-year FRM, loans with balances over $417,000 declined by 2 basis points torn4.28 percent.  Points decreased from 0.22rnthe previous week to 0.15. </p

Interestrnrates on the 30-year FRM backed by the FHA eased down by 1 basis point to anrnaverage of 4.07 percent and points decreased to 0.04 from 0.09.  </p

Fifteen-year</bFRM had an average contract rate of 3.55 percent, down from 3.56 percent thernprevious week.  Points were unchanged atrn0.26.</p

Thernaverage rate for a 5/1 hybrid adjustable rate mortgage (ARM) jumped from 3.20rnpercent to 3.31 percent and points increased from 0.40 to 0.51.  The effective rate increased.  ARMs had a 7.6 percent share of allrnapplications during the week, down from 8 percent the previous week.</p

MBA’srnweekly survey has been conducted since 1990 and covers 75 percent of retailrnresidential mortgage applications in the U.S. rnSurvey respondents include mortgage bankers, commercial banks andrnthrifts.  Base period and value for allrnindexes in March 16, 1990=100.  Interestrnrate information assumes a mortgage with an 80 percent loan-to-value ratio andrnpoints include the origination fee.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.

About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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