Mortgage Application Volume Down for 5th Straight Week

by devteam September 5th, 2012 | Share

Mortgage applications declined againrnduring the week ended August 31, down 2.5 percent on a seasonally adjustedrnbasis from a week earlier.  The MortgagernBankers Association reported that its Market Composite Index, a measure ofrnapplication volume, was down 3 percent on an unadjusted basis from the weekrnended August 24.  </p

The Refinancing Index also declined 3rnpercent from the previous week.  Both thernComposite and the Refinancing Index have declined steadily since the week endedrnJuly 27 and applications for refinancing are now at the lowest level sincernMay.  Refinancing made up a 79 percentrnshare of mortgage applications, unchanged from the previous week but down fromrn81 percent in late July.</p

The Purchase Index decreased 0.8 percentrnon a seasonally adjusted basis.  Thernunadjusted Purchase Index was down 3 percent but was 1 percent higher thanrnduring the same period in 2011.</p

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

ChartManager.loadChart(‘purchaseappschart’, ‘PurchaseMtgAppChart’);


Refinance Index vs 30 Yr Fixed</p

ChartManager.loadChart(‘refiappschart’, ‘RefiMtgAppChart’);


Both contract interest rates andrneffective rates declined across the board. rnThe average rate for 30-year fixed rate mortgages (FRM) with conformingrnloan balances of $417,500 or less declined from 3.80 percent with 0.42 point torn3.78 percent with 0.37 point.  The jumbornversion of the 30-year FRM was down one basis point to 4.05 percent with pointsrndecreasing to 0.32 from 0.34.  Thirty-yearrnFRM backed by the FHA had an average interest rate of 3.54 percent with 0.44rnpoints, down from 3.60 percent with 0.48 point. rnThe 15-year FRM rate slipped to 3.10 percent with 0.37 point from 3.12rnpercent with 0.44 point.</p

Rates for the 5/1 adjustable raternmortgages (ARMs) averaged 2.64 percent with 0.35 point compared to 2.68 percentrnwith 0.36 percent the previous week.  ThernARM share of mortgage applications increased to 5 percent during the week.</p

All rates provided by the MBA are for 80rnpercent loan-to-value ratio loans and points include the application fee.</p

MBA’s weekly Mortgage Application Surveyrncovers over 75 percent of all U.S. retail residentialrnmortgage applications, and has been conducted weekly since 1990. rnRespondents include mortgage bankers, commercial banks and thrifts.  Basernperiod and value for all indexes is March 16, 1990=100.

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About the Author


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

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