Applications for refinancing fell again
during the week ended August 16 the Mortgage Bankers Association (MBA) said
today. MBA' Refinancing Index, a measure
of application volume, fell 8 percent from the previous week and was down 62.1
percent from its recent peak reached during the week of May 3, 2013. Refinancing as a share of mortgage activity
dropped another percentage point during the week to 62 percent.
Refinance Index vs 30 Yr Fixed
Overall mortgage applications as reflected
in MBA's Market Composite Index, decreased 4.6 percent on a seasonally adjusted
basis and 5 percent on an unadjusted basis.
The seasonally adjusted Purchase Index increased 1 percent and the
unadjusted index was down 0.4 percent from the week ended August 9. The unadjusted Purchase Index was 5 percent
higher than in the same week one year ago.
Purchase Index vs 30 Yr Fixed
Both contract and effective interest
rates increased during the week with most of the contract rates up by double
digits. The average contract rate for
30-year fixed-rate mortgages (FRM) with conforming balances of $417,000 or less
rose 12 basis points to 4.68 percent with points increasing to 0.42 from
0.39. The contract rate for jumbo
30-year FRM with balances over that amount rose to 4.74 percent with 0.28 point
from 4.57 percent with 0.25 point. The 15-year FRM had an average rate of 3.71
percent with 0.32 point, up from 3.60 percent with 0.35 point.
Thirty-year FRM backed by the FHA had
average contract rates of 4.40 percent compared to 4.25 percent a week
earlier. Points decreased to 0.21 from
The market share of adjustable rate mortgages
(ARMs) increased slightly during the week to 6 percent. The average contract rate for the most
popular version of the ARM, the 5/1 hybrid, increased to 3.36 percent with 0.48
point from 3.44 percent with 0.37 point.
MBA derives interest rate and
application volume information from a weekly survey of mortgage bankers,
commercial banks and thrifts that covers over 75 percent of all U.S. retail
mortgage applications. Interest rate
information is for loans with 80 percent loan-to-value ratios and points
include the origination fee. The survey
has been conducted since 1990 and the base period and value for all indexes is
March 16, 1990=100.