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Mortgage Applications Flat During Holiday Week

by devteam January 29th, 2014 | Share

Whether it was the weather, the MartinrnLuther King Holiday which shortened the business week, or consumers practicingrnpatience as mortgage rates drift lower, there wasn’t much happening in the wayrnof mortgage application activity last week. rnThe Mortgage Bankers Association (MBA) said today that applications forrnboth purchase mortgages and refinancing were essentially flat during the weekrnended January 24.  </p

MBA’s Market Composite Index, a measurernof application volume, was down 0.2 percent from the previous week on a seasonallyrnadjusted basis and with an additional adjustment to account for thernholiday.  On an unadjusted basis thernindex decreased 9 percent from the week ended January 17.</p

The Refinance Index dipped by 2 percentrnfrom the week before and the refinance portion of applications fell to 62rnpercent from 64 percent.  This was thernlowest share for refinancing since September. rn</p

The seasonally adjusted Purchase Index increased 2rnpercent from one week earlier. The unadjusted Purchase Index decreased 3rnpercent compared with the previous week and was 12 percent lower than the samernweek one year ago.</p

Refinance Index vs 30 Yr Fixed</p

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The seasonally adjusted Purchase Index</bwas down 4 percent from the previous week. rnThe unadjusted index was up 2 percent week-over-week but was 15 percentrnlower than the same week in 2012.</p

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

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

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Contract and effective rates for all fixed-raternmortgage products (FRM) slipped during the week, with contract rates at their lowestrnlevels since the week ended November 29. rnRates for adjustable rate mortgages (ARMs) rose slightly.  The contract rate for 30-year FRM withrnconforming balances of $417,000 or less decreased from 4.57 percent with 0.36rnpoint to 4.52 percent with 0.40 point.  Thernrate for the jumbo 30-year FRM (balances above $417,000) decreased to 4.47rnpercent with 0.27 point from 4.57 percent and 0.18 point.  </p

The contract interest rate for 30-year FRM backedrnby the FHA decreased to 4.18 percent with 0.33 point.  The prior week the contract rate was 4.24rnpercent with 0.23 point.</p

Contract rates for the 15-year FRM decreased 9rnbasis points to an average of 3.59 percent. rnPoints decreased to 0.26 from 0.29. rn <br /<br /The average contract interest rate for 5/1 ARMs increased to 3.25 percent fromrn3.23 percent, with points decreasing to 0.33 from 0.37 and the effective raterndecreased.  ARM's held on to a 7 percentrnshare of mortgage applications, the same as the previous week</p

MBA’s data comes from the Weekly MortgagernApplication Survey it has conducted since 1990. rnThe survey covers over 75 percent of all U.S. retail residential mortgagernapplications and respondents include mortgage bankers, commercial banks andrnthrifts.  Base period and value for all indexes is March 16, 1990=100.  Rates are surveyed for loans with an 80 percentrnloan-to-value ratio and points include the origination fee.

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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