Mortgage Applications Post Another Strong Week, Up 7%

by devteam January 23rd, 2013 | Share

The MortgagernComposite Index, a measure of mortgage loan application volume, was uprnsignificantly during the week ended January 18, its second strong increase inrnas many weeks.   The Mortgage Bankers Association (MBA) reportedrnthat the index increased 7.0 percent on a seasonally adjusted basis, buildingrnon a 15.2 percent jump during the week ended January 11.  On an unadjusted basis the Index rose 8rnpercent compared to the previous week.  </p

Refinancingrnaccounted for 82 percent of all applications, unchanged from the previous week,rnand the Refinance Index was up 8 percent.  rnThe seasonally adjusted Purchase Index increased 3 percent from one week earlier and was atrnits highest level since May of 2010, immediately following the expiration ofrnthe homebuyer tax credit. MBA noted that the increase in purchase applicationsrnwas primarily for conventional loans and the seasonally adjusted ConventionalrnPurchase Index was at its highest level since October of 2009.  Thernunadjusted Purchase Index increased 9 percent compared with the previousrnweek and was 26 percent higher thanrnthe same week one year ago.rn</p

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

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


Refinance Index vs 30 Yr Fixed</p

ChartManager.loadChart(‘refiappschart’, ‘RefiMtgAppChart’);


Rates forrnmortgage loans with 80 percent loan-to-value ratios were mixed.  The average contract  rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increasedrnto 3.62 percent from 3.61 percent, with points, (which in allrncases include the origination fee) increasing to 0.43 from 0.38.rn The contract interest rate for 30-yearrnfixed mortgages has increased for five of the last six weeks.  Therneffective rate increased from lastrnweek.</p

The average contract interest rate for 30-year fixed-raternmortgages (FRM) with jumbo loan balances (greater than $417,500) decreased torn3.85 percent from 3.88 percent, with points decreasing to 0.34rnfrom 0.38 and the effective rate decreased from last week.</p

The raternfor 30-year FRM backed by the FHA increased to 3.40 percent with 0.53 pointrnfrom 3.39 percent with 0.58 point.  Therneffective rate decreased from the previous week.</p

The 15-year FRM rate decreased to 2.87 percent from 2.88rnpercent, with points increasing to 0.39 from 0.27 and the effective rate increased. </p

The average contract interest rate for 5/1 adjustable raternmortgages (ARMs) decreased to 2.61 percent from 2.66 percent, withrnpoints decreasing to 0.32 from 0.34 andrnthe effective rate was down.  Applicationsrnfor ARMs were up slightly to 4 percent of all applications. </p

Informationrnon rates and application volume are derived from MBA’s Weekly MortgagernApplications Survey which has been conducted since 1990.   Respondents include mortgage bankers,rncommercial banks and thrifts.  Base period and value for all indexes isrnMarch 16, 1990=100.</p


All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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