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Mortgage Applications Down Sharply During Holiday Shortened Week
Mortgage applications were down sharplyrnduring the week ended November 24, a week that was shortened by thernThanksgiving Day holiday. The MortgagernBankers Association’s (MBA) Weekly Mortgage Applications Survey found that thernvolume of loan applications as measured by its Market Composite Index was downrn11.7 percent on a seasonally adjusted basis and 39.0 percent on an unadjustedrnbasis from the previous week.</p
The Refinance Index decreased 15.3 percentrnfrom the week ended November 18 and the seasonally adjusted Purchase Index wasrndown 33.7 percent. The Purchase Indexrnwas 18.2 percent lower than during the same week in 2010.</p
The four-week moving average for thernseasonally adjusted Market Index was down 3.29 percent and the moving averagernfor the Refinance Index decreased 4.92 percent. rnThe moving average for the seasonally adjusted Purchase Index was uprn2.37 percent.</p
The refinancing portion of overallrnmortgage applications continued to drop from the year’s high of 79.7 percent inrnSeptember. During the current periodrnrefinancing applications represented 73.9 percent of the total compared to 75.9rnpercent the previous week. This is the lowest share for refinancing since July. Applications for adjustable rate mortgagesrn(ARM) increased to 5.8 percent from 5.7 percent of total applications.</p
Figures for the month of Octoberrnindicate that 6.1 percent of mortgage applications for home purchases werernfiled by investors, up one basis point from September. Much of this increase occurred in the NewrnEngland region. Applications to purchasernsecond homes decreased from 5.8 percent in September to 5.6 percent in October.</p
Purchase Index vs 30 Yr Fixed</b</p
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Refinance Index vs 30 Yr Fixed</p
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Interest rates for most mortgagernproducts decreased during the week as did all effective rates. The average contract rate for 30-yearrnfixed-rate mortgages (FRM) with conforming loan balances ($417,500 or less)rndecreased from 4.23 percent with 0.46 point to 4.21 percent with 0.49rnpoint. Jumbo 30-year FRM (with loanrnbalances greater than $417,500) decreased four basis points to 4.55 percentrnwith points increasing from 0.40 to 0.45. </p
FHA-backedrnmortgages (30-year FRM) decreased to 4.00 percent from 4.05 percent, the lowestrnrate since January while points increased to 0.62 from 0.55.</p
Thernrate for 15-year FRM was unchanged at 3.58 percent with points decreasing torn0.45 from 0.53. The rate for 5/1 ARMSrnwas 2.98 percent with 0.47 point compared to 3.00 percent with 0.49 point onernweek earlier. All rates are for 80rnpercent loan-to-value loans and all points include the origination fee.</p
The MBArnsurvey covers over 75 percent of all U.S. retail residential mortgagernapplications, and has been conducted weekly since 1990. Respondentsrninclude mortgage bankers, commercial banks and thrifts. Base period andrnvalue 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
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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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