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Mortgage Applications Rise 3.4%, Rates Move Higher
After decreasing during the holidayrnshortened week ended January 25 the pace of mortgage applications returned lastrnweek to the upward track it had been on since the first of the year. The Mortgage Bankers Association’s (MBA)rnMarket Composite Index, a measure of application volume, rose 3.4 percent on arnseasonally adjusted basis from the week ended February 1. On an unadjusted basis the volume was up 16rnpercent compared to the previous week.</p
The seasonally adjusted Purchase Indexrnwas up 2 percent to the highest level since early May 2010. On an unadjusted basis it soared 21 percentrnweek-over-week and was 16 percent higher than during the same week inrn2011. The Refinance Index was up 4rnpercent but the refinancing share of applications decreased to 78 percent fromrn79 percent, the lowest share for refinancing since last July. </p
Purchase Index vs 30 Yr Fixed</b</p
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Refinance Index vs 30 Yr Fixed</p
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Bothrncontract and effective mortgage interest rates increased across the board. Thernaverage contract rate for 30-year fixed-rate mortgages (FRM) with conformingrnbalances of $417,500 or less increased to 3.73 percent with 0.43 point fromrn3.67 percent with 0.42 point. This wasrnthe seventh week out of the past eight that this rate has risen. </p
The raternfor jumbo 30-year FRM (balances above $417,500) rose 1 basis point to 3.96rnpercent while points declined from 0.39 to 0.38. </p
FHA-backed 30-year FRM had a contract rate of 3.53 percentrnwith 0.38 point compared to 3.48 percent with 0.33 point the previousrnweek. </p
The 15-yearrnFRM rate rose to 3.0 percent from 2.95 percent. rnPoints decreased to 0.33 from 0.38. rn</p
Thernaverage contract interest rate for 5/1 adjustable rate mortgages (ARMs) jumpedrn12 basis points to 2.72 percent but points decreased to 0.30 from 0.33. ARMs had a 4 percent share of mortgagernvolume, unchanged from the previous week. </p
MBA’s datarnis derived from a weekly survey it has conducted since 1990 among mortgagernbankers, commercial banks, and thrifts. rnInterest rate information is for loans with an 80 percent loan-to-valuernratio and points include the origination fee. rnBase period and value for all indexes is March 16, 1990=100.
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