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Mortgage Applications Rebound from Sandy's Impact
Mortgage activity increased during thernweek ended November 9 as parts of the states most impacted by Hurricane Sandy inrnlate October were able to return to more normal activity. The Mortgage Bankers Association’s WeeklyrnMortgage Applications Survey, a measure of applications volume, increased 12.6rnpercent on a seasonally adjusted basis and 12 percent on an unadjusted basisrnfrom the week ended November 2. </p
Applications for both refinancing andrnhome purchases increased. ThernRefinancing Index was up 13 percent following five consecutive weeks of declinernand the share of applications for refinancing rose to 81 percent from 80rnpercent the previous week. Thernseasonally adjusted Purchase Index increased 11 percent form one week earlierrnwhile the unadjusted Purchase Index was 8 percent higher than the previous weekrnand 22 percent above that of the same week in 2011. </p
“Following the decrease in applications two weeks ago duernto the effects of superstorm Sandy, mortgage applications in many East Coastrnstates rebounded strongly this week,” said Mike Fratantoni, MBA’s VicernPresident of Research and Economics. “Application volume in New Jerseyrnmore than doubled over the week, while volume in Connecticut and New Yorkrnincreased more than 60 percent. In addition to the rebound in the statesrnimpacted by the storm, the 30 year fixed mortgage rate reached a new record lowrnin the survey.”</p
Purchase Index vs 30 Yr Fixed</b</p
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Refinance Index vs 30 Yr Fixed</p
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Both average contract interest rates and effective rates forrnmortgage loans with 80 percent loan to value ratios decreased across the board. Conforming 30-year fixed-rate mortgages (FRM)rnwith balances of $417,500 or less hit yet another record low rate with an averagerncontract rate of 3.52 percent with 0.41 point (including the origination fee)rncompared to 3.61 percent with 0.45 point the previous week. </p
The rate for 30-year jumbo FRM with balances over $417,500rndecreased to 3.83 percent from 3.88 percent with points rising to 0.41 fromrn0.36. FHA-backed 30-year FRM rates decreasedrnby 3 basis points to 3.34 percent and points rose from 0.75 to 0.78. Fifteen-year FRM rates fell to 2.88 percentrnwith 0.37 point from 2.95 percent with points 0.40rnpoint. </p
Adjustable-rate mortgages (ARM) maintained a market sharernof 4 percent. The contract rate for the 5/1rnadjustable version was 2.60 percent with 0.30 point compared to 2.61 percentrnwith 0.41 point.</p
MBA’s survey covers over 75 percent of all U.S. retailrnresidential mortgage applications, and has been conducted weekly sincern1990. Respondents include mortgage bankers, commercial banks andrnthrifts. 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.
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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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