Applications for mortgages increased
substantially during the week ended January 11 as purchase applications soared
to their highest levels in nearly two years.
The Mortgage Bankers Association's (MBA) Market Composite Index for the first full
working week of the New Year increased 15.2 percent on a seasonally adjusted
basis and 45 percent on an unadjusted basis compared to the holiday shortened week
ended January 4.
seasonally adjusted Purchase Index was up 13 percent on a seasonally adjusted
basis from the previous week to the highest level since April 2011. The unadjusted index was 47 percent higher
than the previous week and 5 percent above that of one year earlier. The Refinance Index increased 15
percent from the previous week and the refinance share of mortgage activity
remained unchanged at 82 percent of total applications.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
rates for the week were mixed. The average contract rate for 30-year fixed-rate
mortgages (FRM) with conforming balances of $417,500 or less remained unchanged
at 3.61 percent with points decreasing to 0.38 from 0.41. The effective loan rate decreased from the
30-year FRM - loans with balances over $417,500 - rose 10 basis points to 3.88
percent with points unchanged at 0.38.
The effective rate increased.
contract rate for 30-year FRM backed by FHA increased to 3.39 percent with 0.58
point from 3.35 percent with 0.69 point and the effective rate increased.
average contract interest rate for 15-year fixed-rate mortgages remained
unchanged at 2.88 percent, with points decreasing to 0.27 from 0.39 and
the effective rate decreased. .
The average contract interest rate for 5/1 adjustable rate
mortgages (ARMs) increased to 2.66
percent from 2.64 percent, with points decreasing to 0.34 from
0.37. The effective rate increased
from last week. The ARM share of activity increased to
3 percent of total applications.
MBA's Weekly Application Survey covers over 75 percent of
all U.S. retail residential mortgage applications, and has been conducted
weekly since 1990. Respondents include mortgage bankers, commercial banks
and thrifts. Rates are based on loans with an 80 percent loan-to-value
ratio and points include the origination fee.
Base period and value for all indexes is March 16, 1990=100.