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Mortgage Applications Fall as Key Rates Reach Five Month Highs
As rates rose the volume of mortgagernapplications fell during the week ended February 8 according to the MortgagernBankers Association’s (MBA) Weekly Mortgage Application Survey. The seasonally adjusted Market CompositernIndex, a measure of loan application volume, was 6.4 percent lower than thernweek ended February 1 and the unadjusted index was 5 percent lower.</p
The Refinance Index was down 6 percentrnalthough refinancing retained the previous week’s 79 percent share of mortgagernapplications. The percentage of loans refinanced through the Home AffordablernRefinance Program (HARP) was also unchanged at 28 percent.</p
Thernseasonally adjusted Purchase Index decreased 10 percent from one week earlier. Thernunadjusted Purchase Index decreased 4 percent compared with the previous weekrnand was 15 percent higher than the same week one year ago.</p
Purchase Index vs 30 Yr Fixed</b</p
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Refinance Index vs 30 Yr Fixed</p
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Thernaverage contract interest rate for 30-year FRM backed by the FHA remained unchangedrnat 3.53 percent, withrnpoints increasing to 0.39 from 0.38 and the effective rate increased. </p
The rate forrn15-year fixed-rate mortgages increased one basis point to 3.01 percent while points decreased to 0.28rnfrom 0.33. The effective rate decreasedrnfrom the previous week.</p
The contract raternfor 5/1 adjustable rate mortgages (ARMs) fell from 2.72 percent with 0.30 pointrnto 2.66 with 0.31 point. The effectivernrate decreased. The ARM share ofrnactivity increased to 4rnpercent of total applications.</p
Ratesrnquoted are for loans with loan-to-value ratios of 80 percent. Points include the origination fee.</p
MBA’s survey has been conducted weekly since 1990 and covers over 75 percent ofrnall U.S. retail residential mortgage applications. Respondents include mortgagernbankers, commercial banks and thrifts. Base period and value for allrnindexes 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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