The modest revival in refinancing applications
continued again last week as mortgage interest rates retreated again. The
Mortgage Bankers Association (MBA) said its Market Composite Index, a measure
of all mortgage application volume, increased 1.3 percent on a seasonally
adjusted basis and 1 percent on an unadjusted basis during the week ended
The increase was solely due to a pickup
in applications for refinancing which increased from a 63 percent share of all
applications to 64 percent. The
Refinancing Index was up 3 percent from its level during the week ended September
27 the highest for the index since August 9.
Applications for home purchases
languished with both the seasonally adjusted and unadjusted purchase indices down
by 1 percent from the previous week. The
unadjusted index was 6 percent lower than during the same week in 2012, the second consecutive week that the unadjusted Purchase
Index was lower than one year earlier.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
movement in interest rates was small, all products tracked by MBA's Weekly
Mortgage Applications Survey were down on both a contract and effective basis. Contract rates all eased back to mid-June
The average contract interest rate for 30-year
fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or less)
decreased to 4.42 percent from 4.49 percent.
Points increased to 0.44 from 0.34.
The average rate for the jumbo version of the 30-year FRM (balances greater
than $417,000) decreased to 4.45 percent from 4.53 percent with points
decreasing to 0.21 from 0.22.
FHA-backed 30-year FRMs had an average contract
rate of 4.15 percent with 0.37 point.
The previous week the rate was 4.21 percent with 0.35 point.
The rate for 15-year FRM was down 3 basis points
from the previous week to an average of 3.52 percent. Points increased from
0.33 to 0.34.
Six percent of applications during the week were
for adjustable rate mortgages (ARMs), unchanged from the week before. The average rate for a 5/1 ARM was down to
3.25 percent from 3.26 percent. Points
increased to 0.29 from 0.28.
All rates quoted 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, 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.