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Mortgage Applications Break 6 Month Losing Streak; ARMs Surge
The slight rise in mortgage applicationrnvolume during the week ended December 6 was the first increase in six weeks. ThernMortgage Bankers Association said that its Market Composite Index was up 1rnpercent on a seasonally adjusted basis from the previous week and 43 percent onrnan unadjusted basis. The week that endedrnNovember 29 had included the Thanksgiving holiday and applications were down byrn40 percent during that week.</p
The Refinance Index increased 2rnpercent from Thanksgiving week but was down 16 percent from the more typicalrnweek previous to that. Sixty-fivernpercent of all applications were for refinancing compared to a 63 percent sharernthe previous week.</p
Refinance Index vs 30 Yr Fixed</p
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The seasonally adjusted PurchasernIndex increased 1 percent from the previous week and was 3 percent lower than thernweek prior to Thanksgiving. Thernunadjusted Purchase Index was up 37 percent on a week-over-week basis but downrn10 percent year-over-year.</p
Purchase Index vs 30 Yr Fixed</b</p
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Rates across the board, bothrncontract and effective, were higher across the board with all fixed ratesrnrising to their highest level since last September. The average contract interest rate forrn30-year fixed-rate mortgages (FRM) with conforming loan balances below $417,000rnincreased to 4.61 percent from 4.51 percent. rnPoints decreased 0.26 from 0.38. </p
The contract rate for jumbo 30-year FRMrn(loan balances above $417,000) increased 10 basis points to 4.59 percent, Pointsrndecreased to 0.15 from 0.24.</p
The rate for 30-year FRM backed byrnFHA jumped to 4.30 percent from 4.17 percent and points increased to 0.38 fromrn0.36.</p
Fifteen-year FRM had anrnaverage rate of 3.66 percent compared to 3.56 percent the week before. Points decreased from 0.32 to 0.31. </p
The share ofrnapplications for adjustable rate mortgages (ARMs) has been slowing rising fromrnthe 3 percent range where it has languished for years. Last week ARMs received 8.1 percent ofrnapplications, the largest share since July 2008. The average rate for a 5/1 ARMrnincreased to 3.11 percent from 3.09 percent and points increased to 0.35 fromrn0.28.</p
Rates and applicationrnvolume information are derived from MBA’s Weekly Mortgage Applications Surveyrnwhich has been conducted since 1990. Information is provided by mortgagernbankers, commercial banks and thrifts and covers over 75 percent of all U.S.rnretail residential mortgage applications. rn Interest rates are quoted forrnloans with an 80 percent loan-to-value ratio and points include the originationrnfee. The base period and value for allrnindexes is March 16, 1990=100.</p<table border="0" cellpadding="0" cellspacing="0" width="700"<tbody<tr
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
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Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.
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