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Mortgage Applications Continue to Slide; Previous Week Revised

by devteam November 13th, 2013 | Share

Inrnaddition to releasing data on mortgage application activity for the week endedrnNovember 8, the Mortgage Bankers Association (MBA) revised its numbers from thernweek ended November 1, erasing most of what had been a significant decline inrnvolume.  Rather than a drop of 7.0rnpercent in the Market Composite Index, MBA said the Index had declined only 2.8rnpercent.  They did not providerninformation on how the internal numbers (purchasing, refinancing) were affectedrnby the adjustment.   It was the first time in recent memory thatrnMBA had issued a revision to its data.</p

Turningrnto the week ended November 8, MBA said the seasonally adjusted Market CompositernIndex decreased 1.8 percent and the unadjusted index lost 3.0 percent.  The Refinance Index decreased 2 percent fromrnthe previous week and refinance applications represented 66 percent of allrnapplications, unchanged from the week before.</p

Refinance Index vs 30 Yr Fixed</p

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Thernseasonally adjusted Purchase Index was 1 percent lower than the prior week andrnthe unadjusted index was down 3 percent. rnThe unadjusted index was 6 percent below the level during the same weekrnin 2012.</p

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

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Bothrncontract and effective interest rates increased across the board.  The average contract interest rate forrn30-year fixed-rate mortgages (FRM) with conforming balances of $417,000 rose torn4.44 percent with .44 point from 4.32 percent with 0.42 percent.  The rate for 30-year FRM with jumbo balancesrn(greater than $417,000) increased to 4.48 percent from 4.37 percent with pointsrnincreasing to 0.34 from 0.26.  Rates forrnboth conforming and jumbo versions of the 30-year FRM were the highest in arnmonth.</p

Thernaverage contract interest rate for 30-year fixed-rate mortgages backed by the FHArnincreased to 4.16 percent from 4.07 percent, with points increasing to 0.32rnfrom 0.22.</p

Thernaverage contract interest rate for 15-year fixed-rate mortgages increased torn3.52 percent, the highest level in a month, from 3.44 percent, with pointsrndecreasing to 0.27 from 0.30. </p

Thernaverage contract interest rate for 5/1 adjustable rate mortgages (ARMs)rnincreased to 3.11 percent from 3.08 percent, with points decreasing to 0.27rnfrom 0.31.  The ARM share of activityrnincreased to 7 percent of total applications.</p

Allrnmortgage information is based on mortgages with 80 percent loan to value ratiosrnand points include the origination fee. rnMBA data is derived from a Weekly Mortgage Application Survey it hasrnconducted since 1990 among mortgage bankers, commercial banks and thrifts.rn Base period and value for all indexes is March 16, 1990=100.

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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