Mortgage applications rallied
last week from the week ended September 6 in which applications were down 13.5
percent and refinancing applications fell 20 percent. The Mortgage Bankers Association (MBA) said
its Market Composite Index, a measure of mortgage application volume, rose 11.2
percent on a seasonally adjusted basis during the week ended September 13,
driven by an 18 percent rebound in refinancing.
On an unadjusted basis the composite was up 23 percent from the previous
The previous week's numbers had included an adjustment for the Labor Day
holiday, but even when this week is factored in, refinances are still down 3% from 2 weeks ago while purchases are unchanged. This week, however, the seasonally adjusted Purchase Index
increased 3 percent from the previous week and the unadjusted Purchasing Index
rose 12 percent and was 1 percent higher than during the same time period in
Purchase Index vs 30 Yr Fixed
Refinancing applications represented 61
percent of applications during the week, up from 57 percent the previous
week. The Home Affordable Refinance
Program (HARP) had a 40 percent share of mortgage applications, up from 38
percent and the highest share the program has enjoyed since MBA began tracking
it early last year.
Refinance Index vs 30 Yr Fixed
Data from MBA's Weekly Mortgage Application
Survey indicated that mortgage rates, both contract and effective, fell
slightly during the week for loans with an 80 percent loan-to-value ratio.
The average contract interest rate for
the 30-year fixed-rate mortgage (FRM) with a conforming balance of $417,000 or
less decreased from 4.80 with 0.46 point to 4.75 percent with 0.39 point. Points included the origination fee.
The rate for a jumbo 30-year FRM with
balances over $417,000 eased down 1 basis point to 4.83 percent. Points decreased from 0.41 to 0.33.
Thirty-year FRM backed by the FHA had an
average contract rate of 4.50 percent with 0.41 point. The previous week the rate had been 4.56
percent with 0.28 point.
The average rate for a 15-year FRM was
3.81 percent with 0.34 point compared to a rate of 3.83 percent with 0.42
percent during the week ended September 6.
The share of applications for adjustable
rate mortgages (ARM) inched up slightly to 7 percent. The contract rate for the hybrid 5/1 ARM
decreased 5 basis points to 3.54 percent with points remaining unchanged at
MBA's survey covers of 75 percent of all
U.S. retail residential mortgage applications and collects data from mortgage
bankers, commercial banks, and thrifts.
The base period and value for all indexes is March 16, 1990=100.