Mortgage Rates, Application Volume Drifted Last Week

Mortgage applications for both homernpurchases and refinancing increased slightly in what was essentially arnlackadaisical week that ended April 19. rnThe Mortgage Bankers Association’s (MBA) Weekly Mortgage ApplicationsrnSurvey also showed interest rates relatively unchanged.  </p

MBA’s Market Composite Index, a measurernof loan application volume, increased 0.2 percent on a seasonally adjustedrnbasis and 1 percent on an unadjusted basis from the previous week.  The Refinance Index was up 0.3 percent withrnrefinancing representing the same 75 percent of all mortgage activity as it hadrnduring the week ended April 12. rnThirty-two percent of refinancing activity was related to the HomernAffordable Refinancing Program (HARP), up from 31 percent the week before andrnthe highest share HARP has enjoyed since MBA began tracking it in February of thisrnyear.</p

Thernseasonally adjusted Purchase Index also increased 0.3 percent from one week earlier to thernhighest level since May 2010. The unadjusted Purchase Index increased 1 percent compared with the previous weekrnand was 18 percent higher than the same week one year ago.</p

The averagerncontract interest rate for 30-year fixed-rate mortgages (FRM) with conformingrnbalances of $417,500 or less, decreased from 3.67 percent with 0.50 point torn3.65 percent with 0.41 point.  Therneffective rate also decreased.   The contract rate for the jumbo equivalent, 30-yearrnloans with balances over $417,500, decreased to 3.75 percent from 3.77 percentrnbut points increased to 0.37 from 0.27 and the effective rate increased.</p

Interest ratesrnfor 30-year FRM backed by the FHA were unchanged during the week but pointsrnincreased from 0.55 to 0.64 and the effective rate also increased</p

The rate for 15-year fixed-rate mortgages decreasedrnby two basis points to 2.89 percent and points increased to 0.40rnfrom 0.34.  The effective rate decreasedrnfrom the previous week.</p

The market share of adjustable-rate mortgages (ARMs)rndecreased from 5 percent to 4 percent for the week.  The average contract interest rate for 5/1rnARMs increased to 2.62 percent from 2.57 percent, with pointsrndecreasing to 0.21 from 0.29 and the effectivernrate increased. </p

Interest raterninformation is given for loans with an 80 percent loan-to-balance ratio andrnpoints include the origination fee.</p

MBA’srnweekly survey has been conducted since 1990 among mortgage bankers, commercialrnbanks and thrifts and covers more than 75 percent of all U.S. retail residentialrnmortgage applications.  Base period andrnvalue for all indexes is March 16, 1990=100.</p

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