As rates rose the volume of mortgage
applications fell during the week ended February 8 according to the Mortgage
Bankers Association's (MBA) Weekly Mortgage Application Survey. The seasonally adjusted Market Composite
Index, a measure of loan application volume, was 6.4 percent lower than the
week ended February 1 and the unadjusted index was 5 percent lower.
The Refinance Index was down 6 percent
although refinancing retained the previous week's 79 percent share of mortgage
applications. The percentage of loans refinanced through the Home Affordable
Refinance Program (HARP) was also unchanged at 28 percent.
seasonally adjusted Purchase Index decreased 10 percent from one week earlier. The
unadjusted Purchase Index decreased 4 percent compared with the previous week
and was 15 percent higher than the same week one year ago.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
Most interest rates
increased during the week, and contract rates for 15-year, and both
conventional and jumbo 30-year fixed-rate mortgages (FRM) rose to the highest
levels since September. The average contract rate for a conventional
(loan balances of $417,500 or less) 30-year FRM rose to 3.75 percent from 3.73
percent with points unchanged at 0.43.
The jumbo version of the loan increased to 3.98 with 0.36 point from
3.96 percent with 0.38 point. The effective
rate for both 30-year loan types also increased.
average contract interest rate for 30-year FRM backed by the FHA remained unchanged
at 3.53 percent, with
points increasing to 0.39 from 0.38 and the effective rate increased.
The rate for
15-year fixed-rate mortgages increased one basis point to 3.01 percent while points decreased to 0.28
from 0.33. The effective rate decreased
from the previous week.
The contract rate
for 5/1 adjustable rate mortgages (ARMs) fell from 2.72 percent with 0.30 point
to 2.66 with 0.31 point. The effective
rate decreased. The ARM share of
activity increased to 4
percent of total applications.
quoted are for loans with loan-to-value ratios of 80 percent. Points include the origination fee.
MBA's survey has been conducted weekly since 1990 and covers over 75 percent of
all U.S. retail residential mortgage applications. Respondents include mortgage
bankers, commercial banks and thrifts. Base period and value for all
indexes is March 16, 1990=100.