Mortgage application
volume fell across the board for the second straight time during the week ended
February 13, 2015. The Mortgage Bankers
Association (MBA) said its Market Composite Index, a measure of mortgage application volume
declined substantially from the previous week, down 13.2 percent on a
seasonally adjusted basis from the week ended February 6 and 12 percent on an
adjusted basis.
All of the Composites components fell compared to the previous week as
well. MBA's Refinance Index decreased 16
percent and the refinance share of applications lost 3 percentage points to 66
percent. The seasonally adjusted Purchase
Index decreased 7 percent from one week earlier. The unadjusted Purchase
Index decreased 2 percent compared
with the previous
week but was able to remain 1 percent higher than during the same week in 2014.
Refinance Index vs 30 Yr Fixed
Purchase Index vs 30 Yr Fixed
"Mortgage rates increased to their highest
level since the beginning of the year last week, and application volume dropped
sharply as a result, particularly for refinances. The market index declined to its lowest level since the week ending January 2nd as purchase application activity decreased seven percent and refinance
applications decreased 16 percent. Refinance
volume fell particularly for larger
loans, as evidenced by the decline of almost $25,000
in the average loan size for a refinance loan,"
said Mike Fratantoni, MBA's Chief Economist.
The FHA share of total applications
increased to 15.2 percent from 14.1 percent last week and the VA share eased
back to 8.0 percent from 8.3 percent. The USDA share of total applications increased to 0.9
percent from 0.7 percent last week.
The average contract interest rate for
30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or
less) increased to 3.93 percent from 3.84 percent, with points increasing to
0.35 from 0.31. The average rate for 30-year fixed-rate
mortgages with jumbo loan balances (greater than $417,000) increased
to 3.92 percent with 0.28 point from 3.90 percent, with 0.19 point. The effective rate for both 30-year FRMs
increased from the previous week.
The average contract interest rate for
30-year fixed-rate mortgages backed by the FHA increased to 3.73 percent from 3.72 percent,
with points decreasing to 0.12 from 0.13. The effective rate was unchanged. The average contract
interest rate for 15-year fixed-rate
mortgages increased by 9 basis
points to 3.24 percent. Points increased to 0.35 from 0.29 and the effective
rate was also up.
The adjustable-rate mortgage
(ARM) share of activity decreased
to 5.3 percent of total applications
from 5.7 percent .The average contract interest rate for 5/1 ARMs increased to
3.09 percent from 3.07 percent, with points increasing
to 0.47 from 0.44. The effective rate increased
from last week.
MBA's Weekly Mortgage Applications Survey 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 and rates
presume an 80 percent loan-to-value ratio and points include the origination
fee. The survey has been conducted since
1990.