Even though mortgage interest rates decreased again,
the Mortgage Bankers Association's (MBA's) Market Composite Index continued to
see-saw, falling off slightly last week from the strong improvement it had shown
the week before. The Index, a measure of
mortgage application volume, was down 0.4 percent on a seasonally adjusted basis
during the week ended September 27 after a better than 5 percent increase the
week before. On an unadjusted basis the Index decreased 1 percent compared to
the week ended September 20.
While applications for refinancing climbed, it wasn't
enough to overcome the week's decline in applications for home purchases. MBA's seasonally adjusted Purchase Index was
down 6 percent as was the unadjusted version of the index. The latter was off 3 percent from its level
during the same week in 2012.
Refinance Index vs 30 Yr Fixed
Purchase Index vs 30 Yr Fixed
Refinancing increased 3 percent and 63 percent of
all mortgage applications received during the week were for refinancing
compared to 61 percent the week before. This
was refinancing's largest market share since August.
Average contract interest rates for all of the
products MBA tracks through its Weekly Mortgage Application Survey fell back to
June 2013 levels last week. All
effective rates were also down from the week before.
The contract rate for 30-year fixed-rate mortgages
(FRM) with conventional balances of $417,000 or less was 4.49 percent with 0.34
point. The previous week that rate had
averaged 4.62 percent with 0.41 point.
The jumbo version of the 30-year FRM (loan balances
over $417,000) decreased to 4.53 percent from 4.66 percent. Points decreased to 0.22 from 0.29.
FHA-backed 30-year FRM had an average contract rate
of 4.21 percent, down 11 basis points from the week before. Points decreased to 0.35 from 0.37.
Fifteen-year FRM fell an average of 13 basis points
to 3.55 percent. Points for the 15-year
did increase from 0.28 to 0.33 but the effective rate still fell.
The share of applications for adjustable rate mortgages
(ARMs) was down from 7 to 6 percent. The
average interest rate for the 5/1 ARM decreased to 3.26 percent from 3.39
percent and points from 0.35 to 0.28.
All contract rates are for loans with an 80 percent
loan-to-value ratio. Points include the
MBA's survey covers over 75 percent of all U.S. retail
residential mortgage applications. Respondents
include mortgage bankers, commercial banks and thrifts. Base period and
value for all indexes is March 16, 1990=100.