Applications volume was lower during the
week ended August 8 across all of the measures employed by the Mortgage Bankers
Association (MBA). MBA's Market
Composite Index decreased 2.7 percent on a seasonally adjusted basis from a
week earlier and it was down 3 percent on an unadjusted basis.
Refinancing retreated to a 54
percent share of all mortgage applications from a 55 percent share during the
week ended August 1. The Refinancing
Index was down 4 percent from the previous week reaching the lowest level since
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase
Index decreased 1 percent from the prior week and was at its lowest point since
February. The unadjusted index lost 2
percent compared to the previous week and was 10 percent below the level during
the same week in 2013. The seasonally
adjusted Government Purchase Index fell by 1 percent to the lowest level since
Purchase Index vs 30 Yr Fixed
Contract interest rates for all
products drifted down slightly; most moved only two or three basis points. Effective rates were lower across the board.
The average contract rate for
30-year fixed-rate mortgages (FRM) with conforming loan balances of $417,000 or
less were unchanged at 4.35 percent with 0.22 point. The jumbo version of the 30-year FRM declined
to 4.24 percent with 0.19 point from 4.26 percent with 0.35 point.
Thirty-year FRM backed by the FHA
had a contract rate that averaged 4.04 percent, down from 4.06 percent the
previous week. Points increased to 0.03
The average rate for a 15-year FRM
was 3.48 percent with 0.30 point during the week ended August 8. The previous week the rate averaged 3.51
percent with 0.28 point.
The share of applications that
were intended for adjustable rate mortgages (ARM) increased slightly but stayed
in the 8 percent range where it has hovered since near the beginning of the
year. The average contract rate for the
most popular ARM, the 5/1 hybrid, decreased to 3.24 percent from 3.32 percent
with points increasing to 0.45 from 0.35.
MBA derives its data from a Weekly
Mortgage Applications Survey which it has conducted since 1990. The survey covers over 75 percent of all U.S.
retail residential mortgage applications and respondents include mortgage
bankers, commercial banks and thrifts.
Base period and value for all indexes is March 16, 1990=100. Interest rate quotes are based on loans with
a loan-to-value ratio of 80 percent and points include the origination fee.