Mortgage Applications slowed for the second straight time last week but
the loss was modest compared to the 9.2 percent plunge during the week that
preceded it. The Mortgage Bankers
Association's (MBA) Mortgage Applications Survey found that applications for
mortgages during the week ended June 20 were 1 percent lower on a seasonally
adjusted basis than during the week ended June 13. The loss brought the Market Composite Index, a
measure of application volume, down to its lowest level since April. On an unadjusted basis the index was down 2.0
The Refinance Index retreated to its May levels, sliding another 1
percent. Applications for refinancing
held the same 52 percent share of all applications received as during the
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase Index lost 1 percent and the unadjusted
index was 2 percent lower than the week before.
The unadjusted index was 18 percent below its level during the same week
Purchase Index vs 30 Yr Fixed
Both the contract and the effective interest rates for fixed rate loans were
lower than during the previous week. The
average contract interest rate for 30-year fixed-rate mortgages (FRM) with
conforming balances of $417,000 or less was 4.33 percent with 0.18 point
compared to 4.36 percent with 0.24 point.
The rate for 30-year jumbo FRM decreased to 4.28 percent from 4.32
percent while points increased to 0.12 from 0.09.
Rates for FHA-backed 30-year FRM fell by 4 basis points to 4.03 percent. Points declined to -0.38 point from -0.39
FRM had an average contract rate of 3.47 percent with 0.19 point. The previous week the rate was 3.50 percent
with 0.16 point.
percent of the applications received during the period were for adjustable rate
mortgages (ARMs). The contract rate for
the most popular of those loans, the 5/1 ARM, increased to 3.23 percent from
3.20 percent with points unchanged at 0.27.
The effective rate also increased.
MBA's weekly survey
covers over 75 percent
of all U.S. retail residential mortgage
applications. Respondents to the survey, which has been conducted since
1990, include mortgage bankers,
commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100
and interest rates are quoted for loans with an 80 percent loan-to-value
ratio. Points include the origination