Refinancing activity increased as
interest rates fell to new lows according to the Weekly Mortgage Applications
Survey released this morning. The Market
Composite Index, a measure of application volume, rose 2.8 percent on a
seasonally adjusted basis and 3 percent unadjusted during the week ended
The Refinancing Index was up 3 percent
from the previous week to the highest level in six weeks and the Mortgage
Bankers Association which conducts the weekly survey said that the refinancing
share of mortgage applications increased to 81.2 percent. The seasonally adjusted Purchase Index
increased 1 percent from the week ended September 14 and the unadjusted index was
down 0.3 percent from a week earlier but was 5 percent above the level during
the same week in 2011.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
The average contract interest rate for every
type of loan tracked by the MBA either established a new survey low or matched
one during the week and the effective rate decreased for every fixed rate
The rate for 30-year fixed-rate
mortgages (FRM) with conforming balances of $417,500 or less decreased to 3.63
percent from 3.72 percent with points decreasing to 0.41 from 0.45. The rate for jumbo 30-year FRM (with balances
greater than $417,500) dropped 12 basis points to 3.87 percent with points
decreasing to 0.33 from 0.35.
Rates for 30-year FRM backed by FHA
decreased to 3.44 percent with 0.41 point from 3.50 percent with 0.57 point.
Contract rates for 15-year FRM dropped
below 3 percent, averaging 2.98 percent compared to 3.03 percent the previous
week. Points increased to 0.41 from
The average rate for 5/1 ARMS equaled the
survey low established the previous week, 2.61 percent, with points increasing
to 0.41 from 0.32. This was the sole
product for which the effective rate increased.
Four percent of applications during the week were for adjustable rate
Interest rates quoted are
for mortgages with loan to value rations of 80 percent and points include the
MBA's weekly survey covers over 75 percent of all U.S.
retail residential mortgage applications, and has been conducted weekly since
1990. Respondents include mortgage bankers, commercial banks and
thrifts. Base period and value for all indexes is March 16, 1990=100.