Refinancing Applications Fall as Rates Rise

by devteam October 31st, 2012 | Share

Applications for refinancing declinedrnfor the fourth straight week according to information from the Mortgage BankersrnAssociation’s (MBA) Weekly Mortgage Applications Survey. This dampened overall applicationrnnumbers despite a slight uptick in home purchase business. MBA’s MarketrnComposite Index, a measure of application volume decreased 4.8 percent on arnseasonally adjusted basis during the week ended October 26 and 5 percent on anrnunadjusted basis from the previous week. </p

MBA’s RefinancernIndex decreased 6 percent from the previous week to the lowest level since thernend of August and the refinancing portion of mortgage applications decreased torn80 percent from 81 percent during the week ended October 19.  The seasonally adjusted Purchase Indexrnincreased 1 percent from one week earlier but the unadjusted Purchase Indexrndeclined 0.3 percent compared with the previous week and was 6 percent higherrnthan the same week one year ago.</p

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

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


Refinance Index vs 30 Yr Fixed</p

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


Mortgagernrates were mixed.  The average contractrninterest rate for 30-year fixed-rate mortgages (FRM) with conforming balancesrnunder $417,500 rose 2 basis points to 3.65 percent with points decreasing torn0.39 from 0.45.  Rates for 30-year jumbornFRM with balances above $417,500 increased from 3.85 percent with 0.42 pointsrnto 3.94 percent with 0.36 points.  Ratesrnfor FHA-backed 30-year FRM rates were unchanged at 3.41 percent but pointsrnincreased to 0.76 from 0.61.  Contract ratesrnwere at the highest level since September for all three and their effective ratesrnalso increased.</p

Shorterrnterm rates declined with the contract interest rate for 15-year fixed-raternmortgages down to 2.95 percent from 2.96 percent, with points decreasing to 0.35 from 0.36.  The rate for 5/1 adjustable rate mortgages (ARMs)rndecreased to 2.66 percent from 2.72 percent, with pointsrnremaining unchanged at 0.33.  Therneffective rate for both loan types decreased.  The ARM share of mortgage applications decreasedrnto 4 percent during the week. </p

All raterninformation is for loans with an 80 percent loan-to-value ratio and pointsrnincluded the origination fee.</p

MBA’srnweekly survey has been conducted since 1990 and covers over 75 percent of allrnU.S. retail residential mortgage applications. Respondents include mortgagernbankers, commercial banks and thrifts.  Base period and value for allrnindexes is March 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.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...