Refinancing Actvity Surges Back to January Levels on Lower Rates

by devteam March 6th, 2013 | Share

Both mortgage applications andrninterest rates moved sharply during the week ended March 1.  The Mortgage Bankers Association (MBA)rnreported that its Market Composite Index, a measure of mortgage applicationrnvolume, increased 14.8 percent on a seasonally adjusted basis from the previousrnweek and 15 percent unadjusted.  At thernsame time interest rates dropped, some by double digits.  </p

The Refinance Index increased 15rnpercent to its highest level since mid-January although the refinancing sharernof applications remained unchanged at 77 percent.  The seasonally adjusted Purchase Indexrnincreased 15 percent as well and the unadjusted Purchase Index was up 18rnpercent compared to the week ended February 22 and was 17 percent higher thanrnthe same week in 2012.</p

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

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


Refinance Index vs 30 Yr Fixed</p

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


Effective ratesrnas well as contract rates were down for all products covered by MBA’s WeeklyrnMortgage Application Survey.  The averagerncontract rate for 30-year fixed-rate mortgages (FRM) with conforming loansrnbalances ($417,500) decreased to 3.70 percent with 0.39 point from 3.77rnpercent with 0.48 point.  This was thernlowest rate for the conforming 30-year since January 25.  </p

Therncontract rate for 30-year FRM with balances over $417,500) fell 13 basis pointsrnto 3.80 percent with points unchanged at 0.37.</p

FHA-backedrn30-year FRM rates decreased to 3.47 percent from 3.54 percent and pointsrndecreased to 0.33 from 0.41. </p

The average contract interest rate for 15-year fixed-raternmortgages decreased to 2.96 percent from 3.03 percent, the lowestrncontract rate since the week ending January 25, 2013, with points increasing torn0.36 from 0.34. </p

The rate for 5/1 adjustable rate mortgages (ARMs) averagedrn2.55 percent, 10 basis points below the rate the previous week.  Points increased to 0.37 from 0.36.  As has been the case for months, ARMs hadrnabout a 4 percent share of mortgage applications. </p

All ratesrnquoted are for loans with an 80 percent loan-to-value ratio and points includernthe originations fee.</p

The survey coversrnover 75 percent of all U.S. retail residential mortgage applications, and hasrnbeen conducted since 1990.  Respondents include mortgage bankers,rncommercial banks and thrifts.  Base period and value for all indexes isrnMarch 16, 1990=100.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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