The Mortgage Bankers Association (MBA) said
the average size of a purchase mortgage loan reported by respondents to its most
recent Weekly Mortgage Applications was $280,500, the highest in the history of
the survey. MBA said this coincides with
the trend in rising purchase activity for larger loan amounts.
MBA's Market Composite Index, a measure of
loan application volume, was down 3.3 percent on a seasonally adjusted basis during
the week ended April 18 compared to the previous week during which the
composite saw its first increase since late February. On a seasonally unadjusted basis the
Composite was down 3.0 percent.
The Refinancing Index fell 4 percent and the market
share of refinancing applications dropped to 51 percent of applications, down
from 52 percent during the week ended April 11. The seasonally adjusted Purchase Index decreased 3 percent and the unadjusted index was 2 percent
below the level of the previous week and 18 percent lower than during the same
week in 2013.
Refinance Index vs 30 Yr Fixed
Purchase Index vs 30 Yr Fixed
Both contract interest rates and
effective interest rates rose during the week.
The average contract rate for 30-year fixed-rate mortgages (FRM) with conforming
loan balances of $417,000 or less increased
to 4.49 percent from 4.47 percent,
with points increasing to 0.50 from 0.32. The
contract rate for the jumbo version of the 30-year FRM (balances in excess of
$418000) was lower than the conforming rate, averaging 4.41 percent with 0.34
point compared to 4.39 percent with 0.18 point the previous week.
backed by the FHA had an average rate of 4.30 percent, up 6 basis points from
the previous week. Points increased to
0.41 from 0.06.
The rate for
15-year FRM rose one basis point to 3.55 percent. Points increased to 0.33 from 0.24.
The market share
of adjustable rate mortgages (ARMs) rose to 9 percent during the week after
remaining at the 8 percent level since the last week in January. The average contract interest rate for 5/1 ARMs increased
to 3.16 percent from
3.15 percent, with points decreasing to 0.36 from 0.41.
MBA's survey covers over 75 percent of all U.S. retail residential mortgage applications
and has been conducted since 1990. Respondents include mortgage bankers, commercial banks and thrifts.
Base period and value for all indexes is March 16, 1990=100
and interest rate information is based on loans with an 80 percent
loan-to-value ratio. Points include the