Whether it was the weather, the Martin
Luther King Holiday which shortened the business week, or consumers practicing
patience as mortgage rates drift lower, there wasn't much happening in the way
of mortgage application activity last week.
The Mortgage Bankers Association (MBA) said today that applications for
both purchase mortgages and refinancing were essentially flat during the week
ended January 24.
MBA's Market Composite Index, a measure
of application volume, was down 0.2 percent from the previous week on a seasonally
adjusted basis and with an additional adjustment to account for the
holiday. On an unadjusted basis the
index decreased 9 percent from the week ended January 17.
The Refinance Index dipped by 2 percent
from the week before and the refinance portion of applications fell to 62
percent from 64 percent. This was the
lowest share for refinancing since September.
The seasonally adjusted Purchase Index increased 2
percent from one week earlier. The unadjusted Purchase Index decreased 3
percent compared with the previous week and was 12 percent lower than the same
week one year ago.
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase Index
was down 4 percent from the previous week.
The unadjusted index was up 2 percent week-over-week but was 15 percent
lower than the same week in 2012.
Purchase Index vs 30 Yr Fixed
Contract and effective rates for all fixed-rate
mortgage products (FRM) slipped during the week, with contract rates at their lowest
levels since the week ended November 29.
Rates for adjustable rate mortgages (ARMs) rose slightly. The contract rate for 30-year FRM with
conforming balances of $417,000 or less decreased from 4.57 percent with 0.36
point to 4.52 percent with 0.40 point. The
rate for the jumbo 30-year FRM (balances above $417,000) decreased to 4.47
percent with 0.27 point from 4.57 percent and 0.18 point.
The contract interest rate for 30-year FRM backed
by the FHA decreased to 4.18 percent with 0.33 point. The prior week the contract rate was 4.24
percent with 0.23 point.
Contract rates for the 15-year FRM decreased 9
basis points to an average of 3.59 percent.
Points decreased to 0.26 from 0.29.
The average contract interest rate for 5/1 ARMs increased to 3.25 percent from
3.23 percent, with points decreasing to 0.33 from 0.37 and the effective rate
decreased. ARM's held on to a 7 percent
share of mortgage applications, the same as the previous week
MBA's data comes from the Weekly Mortgage
Application Survey it has conducted since 1990.
The survey covers over 75 percent of all U.S. retail residential mortgage
applications and respondents include mortgage bankers, commercial banks and
thrifts. Base period and value for all indexes is March 16, 1990=100. Rates are surveyed for loans with an 80 percent
loan-to-value ratio and points include the origination fee.