Mortgage Apps Little Changed; FHA/VA Gain Market Share

Mortgage application volume declined slightly in all butrnone category during the week ended November 7. rnThe Mortgage Bankers Association said that its Market Composite Index, arnmeasure of application volume, was down 0.9 percent on a seasonally adjustedrnbasis from volume during the week ended October 31 and was 2 percent lower on arnnon-adjusted basis.</p

Refinancing retained the previous week’s 63 percentrnshare of application volume but the Refinance Index declined by 2 percent.</p

Refinance Index vs 30 Yr Fixed</p

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The seasonally adjusted Purchase Index wasrnthe only index to increase compared to the previous week, rising 1rnpercent.  The unadjusted Purchase Index decreasedrn2 percent from a week earlier and was 11 percent lower than during the samernweek in 2013. </p

Purchase Index vs 30 Yr Fixed</p

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The market share of FHA-backed mortgages increasedrnfrom 9.5 percent to 9.6 percent and the VA share rose from 10.7 percent to 11rnpercent.  USDA mortgages made up 0.9rnpercent of total applications, unchanged from the previous week.</p

Both contract and effective interest rates were mixed.  The average contract rate for conformingrn30-year fixed-rate mortgages (FRM) (loans with balances of $417,000 or less)rnincreased 2 basis points to 4.19 percent and points increased to 0.26 fromrn0.22.  The effective rate increased. </p

The jumbo 30-yearrnFRM (balances in excess of $417,000) had an average rate of 4.13 percent,rnunchanged from the previous week.  Pointsrnincreased to 0.15 from 0.11 and the effective rate also increased.  </p

The averagerncontract interest rate for 30-year fixed-rate mortgages backed by the FHArnincreased to 3.90 percent from 3.84 percent, with points decreasing to 0.14rnfrom 0.34.  The effective rate remainedrnunchanged from the previous week. </p

Rates forrnthe 15-year FRM were unchanged at 3.38 percent and points decreased to 0.22rnform 0.31.  The effective rate decreased.rn</p

Applicationsrnfor adjustable-rate mortgages fell to the lowest market share since Januaryrneven as the interest rate for the 5/1 hybrid ARM decreased to 3.05 percent fromrn3.08 percent and points decreased to 0.32 from 0.33.  The effective rate also decreased.  </p

MBA’s WeeklyrnMortgage Applications Survey from which application and rate information isrncompiled covers over 75 percent of all U.S. retail residential mortgagernapplications, and has been conducted since 1990. Respondents include mortgagernbankers, commercial banks and thrifts. Base period and value for all indexes isrnMarch 16, 1990=100 and interest rates assume loans with an 80 percent loan tornvalue ratio. Points include the origination fee.

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