The volume of mortgage applications decreased 3.8
percent on a seasonally adjusted basis during the week ended February 22
according to the Mortgage Bankers Association (MBA). On an unadjusted basis the
Market Composite Index, a measure of loan application volume, was down 3
percent compared to the previous week. MBA
made no adjustment in the numbers to compensate for the Presidents' Day holiday
on Monday of that week.
The Refinancing Index was down 3 percent from the
previous week although the refinance share of applications was unchanged at 77
percent. Loans through the Home
Affordable Refinance Program (HARP) accounted for 30 percent of those
refinances, up from 29 percent the previous week.
The seasonally adjusted Purchase Index was down 5
percent for the week, reaching its lowest level since the last week of
2012. On an unadjusted basis the
purchase index was down 2 percent compared with the week ended February 15 but
was 14 percent higher than the same week in 2011.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
Interest rates reported by the MBA were largely unchanged. The average contract
interest rate for 30-year fixed-rate mortgages (FRM) with
conforming loan balances ($417,500 or less) decreased to 3.77 percent from
3.78 percent, with
points increasing to 0.48 from 0.40.
The effective rate increased from the previous week. The rate for 30-year FRM with jumbo loan
balances (greater than $417,500) decreased to 3.93
percent with 0.37 point from 3.94
percent with 0.40 point and the effective rate decreased.
FHA-backed 30-year FRM had an average rate of 3.54 percent,
from the previous week. Points increased
to 0.41 from 0.40 and the effective rate increased.
Rates for 15-year FRM were also unchanged at 3.03
percent. Points dropped from 0.38 to
0.34 and the effective rate decreased.
mortgages (ARM) garnered a four percent share of loan applications, the same as
the prior week. The average interest
rate for 5/1 ARMS decreased to 2.65 percent from 2.66 percent with points
increasing to 0.36 from 0.32. The
effective rate decreased.
Interest rates are based on loans with an 80 percent
loan-to-value ratio and points include the origination fee.
MBA derives its application volume and interest rate data
from a weekly survey of mortgage bankers, commercial banks and thrifts. The survey has been conducted since 1990 and
the base period for all indices is March 16, 1990 =100.