Refinancing Volume Breaks 10-Week Losing Streak

by devteam March 27th, 2013 | Share

Applications for both purchasing and refinancing increased during the week ended March 22 according to information released this morning by the Mortgage Bankers Association (MBA).  MBA’s Market Composite Index, a measure of mortgage application volume, increased 7.7 percent on a seasonally adjusted basis and 8 percent on an unadjusted basis from the previous week. </p

Applications for refinancing made up 75 percent of the total volume, unchanged from the previous week, and 29 percent of those applications were for HARP loans, down from 30 percent.  The Refinancing Index increased by 8 percent from the week ended March 15 ending 10 straight weeks of declining volume. </p

The Purchase Index increased 7 percent on both a seasonally adjusted and an unadjusted basis from the previous week and the unadjusted Purchase Index was 10 percent above the level during the same week in 2012. </p

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

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Refinance Index vs 30 Yr Fixed</p

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


The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,500 or less) decreased to 3.79 percent from 3.82 percent, with points increasing to 0.44 from 0.38.  The effective rate decreased from the prior week.</p

Rates for the jumbo version of the 30-year FRM with balances greater than $417,500 were down to 3.90 percent with 0.42 point from 3.95 percent with 0.36 point.  The effective rate also fell.
Contract rates for FHA-backed 30-year FRM decreased from 3.51 percent to 3.51 percent but points jumped to 0.43 from 0.31, driving the effective rate higher.  </p

The average interest rate for 15-year fixed-rate mortgages was unchanged at 3.02 percent, with points increasing to 0.42 from 0.36 and the effective rate increased. </p

Adjustable rate mortgages (ARMs) had a five percent share of applications, down slighly from the previous week.  The average contract interest rate for 5/1 ARMs decreased one basis point to 2.58 percent; points decreasing to 0.32 from 0.40 and the effective rate decreased. </p

All rates quoted are for loans with an 80 percent loan-to-value ratio and points include the origination fee. </p

MBA’s Weekly Mortgage Applications Survey has been conducted weekly since 1990 and covers mortgage bankers, commerial banks, and thrifts.  The base period and value for all indices is March 16, 1990=100.

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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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