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Mortgage Apps Dragged Down by Purchases; Refis Rebound as Rates Drop

by devteam October 2nd, 2013 | Share

Even though mortgage interest rates decreased again,rnthe Mortgage Bankers Association’s (MBA’s) Market Composite Index continued tornsee-saw, falling off slightly last week from the strong improvement it had shownrnthe week before.  The Index, a measure ofrnmortgage application volume, was down 0.4 percent on a seasonally adjusted basisrnduring the week ended September 27 after a better than 5 percent increase thernweek before. On an unadjusted basis the Index decreased 1 percent compared tornthe week ended September 20.</p

While applications for refinancing climbed, it wasn’trnenough to overcome the week’s decline in applications for home purchases.  MBA’s seasonally adjusted Purchase Index wasrndown 6 percent as was the unadjusted version of the index.  The latter was off 3 percent from its levelrnduring the same week in 2012.</p

Refinance Index vs 30 Yr Fixed</p

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

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

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

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Refinancing increased 3 percent and 63 percent ofrnall mortgage applications received during the week were for refinancingrncompared to 61 percent the week before.  Thisrnwas refinancing’s largest market share since August. </p

Average contract interest rates for all of thernproducts MBA tracks through its Weekly Mortgage Application Survey fell back tornJune 2013 levels last week.  Allrneffective rates were also down from the week before.  </p

The contract rate for 30-year fixed-rate mortgagesrn(FRM) with conventional balances of $417,000 or less was 4.49 percent with 0.34rnpoint.  The previous week that rate hadrnaveraged 4.62 percent with 0.41 point.</p

The jumbo version of the 30-year FRM (loan balancesrnover $417,000) decreased to 4.53 percent from 4.66 percent.  Points decreased to 0.22 from 0.29.</p

FHA-backed 30-year FRM had an average contract raternof 4.21 percent, down 11 basis points from the week before.  Points decreased to 0.35 from 0.37.</p

Fifteen-year FRM fell an average of 13 basis pointsrnto 3.55 percent.  Points for the 15-yearrndid increase from 0.28 to 0.33 but the effective rate still fell. </p

The share of applications for adjustable rate mortgagesrn(ARMs) was down from 7 to 6 percent.  Thernaverage interest rate for the 5/1 ARM decreased to 3.26 percent from 3.39rnpercent and points from 0.35 to 0.28. </p

 </p

All contract rates are for loans with an 80 percentrnloan-to-value ratio.  Points include thernorigination fee.</p

MBA’s survey covers over 75 percent of all U.S. retailrnresidential mortgage applications.  Respondentsrninclude mortgage bankers, commercial banks and thrifts.  Base period andrnvalue for all indexes is March 16, 1990=100.</p

 

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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