After just barely moving off 12 year lows in the previous week, Mortgage Applications bounced back in
the first full week after the holiday season, increasing 11.9 percent on a
seasonally adjusted basis during the week ended January 10. The
Mortgage Bankers Association (MBA) said its Market Composite Index, a measure
of mortgage application had been adjusted for the previous week, ended January
3, to account for the New Year holiday. The unadjusted index posted an increase
of 61 percent.
Refinance Index rose 11 percent and applications for refinancing fell to 62
percent of total applications from 63 percent the previous week. This was the lowest share for refinancing
since last September.
Refinance Index vs 30 Yr Fixed
seasonally adjusted Purchase Index increased 12 percent and the unadjusted
index was up 66 percent from the previous week and was 10 percent lower than in
the same week in 2013. MBA said the
adjusted Purchase Index was at a level similar to that of mid-November.
Purchase Index vs 30 Yr Fixed
rates started the new year on the downslope with both contract and effective rates
decreasing. The average contract
interest rate for 30-year fixed-rate mortgages (FRM) with conforming balances
of $417,000 or less decreased to 4.66 percent with 0.33 point from 4.72 percent
with 0.28 point. The jumbo version of
the 30-year FRM (loan balances above $417,000) had an average rate of 4.58
percent with 0.24 point compared to 4.66 percent with 0.12 point the previous
contract rate for 30-year FRM backed by the FHA decreased to 4.29 percent from
4.36 percent, with points increasing to 0.17 from 0.15.
average contract interest rate for 15-year fixed-rate mortgages fell 5 basis
points to 3.72 percent. Points increased
to 0.37 from 0.34.
volume of adjustable rate mortgages (ARMs) remained at an 8 percent share
during the week. The average rate for
the 5/1 ARMs decreased to 3.28 percent from 3.33 percent, with points
increasing to 0.47 from 0.44.
Weekly Mortgage Application Survey covers over
75 percent of all U.S. retail residential mortgage applications, and has been conducted
since 1990. Respondents include mortgage bankers, commercial banks and
thrifts. Interest rates are reported for loans with an 80 percent loan-to
-value ratio and points include the origination fee. Base period and value for all indexes is March