Applications for refinancing represented
75 percent of all mortgage activity last week compared to 76 percent the week
before according to the Weekly Mortgage Applications Survey conducted by the
Mortgage Bankers Association (MBA). The
week ended March 15 was the 10th straight week that refinancing lost
market share and it was at the lowest level since last May. Applications for refinancing through the HARP
program increased to 31 percent of refinancing applications compared to 30
percent during the week ended March 8.
MBA's Market Composite Index, a measure
of overall mortgage application volume, was down 7.1 percent on a seasonally
adjusted basis and 7.0 percent unadjusted from the previous week. The
Refinancing Index declined 8 percent.
The seasonally adjusted Purchase Index fell 4 percent and the unadjusted
index 3 percent compared to the previous week.
The unadjusted index was 6 percent higher than it was one year earlier.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($417,500 or less) increased
to 3.82 percent with 0.38 point from 3.81 percent, with 0.39 point and the effective rate increased
from the previous week. The jumbo
30-year FRM increased to 3.95 percent from 3.90 percent, with
points decreasing to 0.36 from 0.46 and the effective rate increased.
The average rate
for FHA-backed 30-year FRM was unchanged at 3.53 percent with points decreasing
to 0.31 from 0.38 thus lowering the effective rate. The government share of purchase applications
declined to 33 percent, its lowest level since January 2009.
contract interest rate for 15-year fixed-rate mortgages increased to
3.02 percent from 3.01 percent, with points decreasing to 0.36 from 0.42. The effective rate also decreased.
rate for 5/1 adjustable rate mortgages (ARMs) dipped 3 basis points to 2.59
percent while points increased from 0.33 to 0.40. The effective rate decreased. The
adjustable-rate mortgage (ARM) share of activity remained constant at 5 percent of total applications.
quoted are for mortgages 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.