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Purchase Applications up Slightly, More than Offset by Drop in Refis

by devteam April 2nd, 2014 | Share

ThernMortgage Bankers Association (MBA) said that mortgage applications decreasedrnagain during the week ended March 28,   The seasonally adjusted Market CompositernIndex, a measure of application volume, was down 1.2 percent from the weekrnended March 21.  On an unadjusted basisrnthe composite lost 1 percent from its level a week earlier.  </p

While thernPurchase Index inched up 1 percent on both a seasonally adjusted and unadjustedrnbasis it could not compensate for the loss of 3 percent in the RefinancingrnIndex from one week earlier.  Thernunadjusted Purchase Index was 17 percent lower than during the same week inrn2013.</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’);

</p

Applicationsrnfor refinancing made up 53 percent of all mortgage applications, down from 54rnpercent a week earlier.  This was the eighthrnstraight week the share of refinancing applications has fallen.  </p

Mortgagernrates, while still trending up did so modestly during the week.  Where increases occurred they were small andrnmany rates remained unchanged.  Thernaverage contract rate for 30-year fixed-rate mortgages (FRM) with conventionalrnloan balances of $417,000 or less was unchanged at 4.56 percent with pointsrnincreasing to 0.31 from 0.29.  The effectivernrate increased from the previous week.   </p

The jumbornversion of the 30-year FRM (balances above $417,000) increased 1 basis point torn4.46 percent.  Points were unchanged atrn0.27 and the effective rate increased.</p

Thernaverage contract rate for 30-year FRM backed by the FHA increased to 4.21 percentrnfrom 4.16 percent.  Points dropped torn0.15 from 0.23 and the effective rate decreased.</p

Fifteen-yearrnFRM had an average contract rate of 3.62 percent, unchanged from the previousrnweek.  Points decreased from 0.24 to 0.23rnand the effective rate was unchanged.</p

Adjustablernrate mortgages retained an 8 percent share of mortgage applications for thernninth straight week.  The averagerncontract interest rate for the most popular of the adjustable rate mortgages,rnthe 5/1 hybrid, increased to 3.25 percent from 3.22 percent and points increasedrnfrom 0.32 to 0.38.  The effective raternincreased from the previous week.</p

MBA’srnWeekly Mortgage Applications Survey has been conducted since 1990 and coversrnover 75 percent of the U.S. retail residential mortgage applications. Surveyrnrespondents include mortgage bankers, commercial banks and thrifts.  Interest rates are quoted for loans with 80rnpercent loan to value ratios and points include the origination fee.  Base period and value 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.

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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