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Purchase and Refinancing Applications Increase Last Week

by devteam October 26th, 2011 | Share

Mortgage application volume</bbounced back from the previous holiday-shortened reporting period to end thernweek of October 21 up almost five percent. rnThe Mortgage Bankers Association's (MBA) Weekly Mortgage ApplicationsrnSurvey found applications for all mortgage types up 4.9 percent on a seasonallyrnadjusted basis and 4.8 percent unadjusted.</p

Applications for both purchasernmortgages and refinancing rose; the Refinancing Index by 4.4 percent and thernPurchase Index by 6.4 percent adjusted and 6.1 percent unadjusted.  The unadjusted index was 2.7 lower than thernsame week in 2010.</p

The four-week moving average for allrnthree indices decreased; the Market index by 3.61 percent, the purchase indexrnby 0.71 percent and the Refinance Index by 4.41 percent.</p

Applications for refinancing madernup 77.3 percent of the volume for the week, down from 77.6 percent during thernweek ended October 14.  Adjustable-raternmortgages (ARM) made up 5.9 percent of the volume, up 1 basis point from thernprevious week.</p

Looking back at September, MBArnreported that investor activity rose slightly during the month with purchase applicationsrnfor non-owner occupied properties up to 6.0 percent from 5.7 percent inrnAugust.  Mortgage applications forrnsecond homes decreased from 6.0 percent of purchase applications in August torn5.8 percent in September.</p

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

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

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Refinance Index vs 30 Yr Fixed</p

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

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Rates for conforming mortgages</a(those with a loan balance of $417,500 or less) were relatively flat during thernweek while the effective rate rose for all products except the 30-year fixedrnrate mortgage (FRM).  The average contractrnrate for that product was unchanged at 4.33 percent with points decreasing fromrn0.48 point to 0.47 including the origination fee.  Rates for 30-year FHA-backed FRM decreased fromrn4.12 percent to 4.11 percent; points increased to 0.61 from 0.53.  </p

Thernaverage contract interest rate for 15-yearrnfixed-rate mortgages increased to 3.62 percent from 3.61 percent, with points increasing to 0.45 from 0.43.rn . </p

Ratesrnfor jumbo 30-year FRMs – loans with a balance greater than $417,500 – rose fromrn4.64 percent with 0.45 point to 4.68 percent with 0.42 point. </p

The average contract interest rate for 5/1 ARMs increased to 3.11 percent with 0.50rnpoint percent from 3.08 percent with 0.48rnpoint. </p

All rate quotes are for mortgages with an 80 percent loan-to-valuernratio.</p

The MBA survey covers over 75 percent of all U.S. retail residentialrnmortgage applications, and has been conducted weekly since 1990. Respondentsrninclude mortgage bankers, commercial banks and thrifts.  Base period andrnvalue 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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