application volume continued to drift during the week ended February 7. The Mortgage Bankers Association (MBA) said
that its Market Composite Index, a measure of that volume, was down 2.0 percent
on a seasonally adjusted basis from the week ended January 31. On an unadjusted basis the index increased
Refinance Index was down 0.2 percent. Applications
for refinancing maintained a 62 percent share of all application activity, the
same as in the two previous weeks.
Refinance Index vs 30 Yr Fixed
seasonally adjusted Purchase Index was down 5 percent from the week before and
the unadjusted index was up 1 percent.
The unadjusted index was 13 percent below its level during the same week
Purchase Index vs 30 Yr Fixed
Except for FHA-backed mortgages interest
rates inched down slightly. The average
rate for the FHA 30-year fixed rate mortgage
(FRM) rose 1 basis point to 4.13 percent.
Points decreased to 0.10 from 0.15.
The 30-year FRM with conforming loan
balances (417,000 or less) averaged 4.45 percent with 0.34 point compared to
4.47 percent with 0.25 points the week before. This was the sole product for which the effective
Jumbo 30-year FRM,
loans with balances above $417,000, had an average contract rate of 4.40
percent, down from 4.42 percent. Points
increased to 0.14 from 0.11.
The average contract
interest rate for 15-year fixed-rate mortgages
decreased to 3.49 percent from 3.53 percent,
with points decreasing to 0.25 from 0.28
The average contract
interest rate for 5/1 adjustable rate mortgages (ARMs) decreased
to 3.11 percent from 3.15 percent,
with points decreasing to 0.31 from 0.41 The adjustable-rate mortgage (ARM) share
of mortgage applications increased marginally to 8 percent.
Mortgage Applications Survey covers 75 percent of the U.S. retail residential
mortgage market and has been conducted since 1990. Respondents include mortgage bankers,
commercial banks, and thrifts. The base
for indexes is March 16, 1990=100 and mortgage rates are based on loans with an
80 percent loan to value ratios. Points
include the origination fee.