Bankers Association (MBA) reports that mortgage applications activity dropped
slightly during the week ended November 16 compared to the week ended November
9. The Market Composite Index, a measure
of application volume, was down 2.2 percent on a seasonally adjusted basis with
an adjustment for the shorter week due to the Veterans Day holiday. On an unadjusted basis the index was down 13
Index decreased 3 percent from the previous week and refinancing held on to the
same 81 percent market share as during that week. The seasonally adjusted Purchase Index
increased 3 percent week-over-week and the unadjusted index was 6 percent lower
than the same week in 2011.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
were mixed. The average contract rate
for a 30-year fixed-rate mortgage (FRM) with a conforming loan balance of
$417,500 increased two basis points to 3.54 percent with points decreasing to
0.40 from 0.41. The effective loan rate
increased for the week.
The jumbo version of the 30-year FRM had an average
contract interest rate of 3.76 percent with 0.40 point compared to 3.83 percent
with 0.41 point the previous week. The
effective rate also decreased.
Rates for 30-year FRM backed by the FHA increased to 3.36
percent from 3.34 percent but points dropped to 0.63 from 0.78 causing the
effective rate to drop.
The average contract interest rate for 15-year fixed-rate
mortgages edged up one basis point to 2.89 percent while points decreased to 0.25 from 0.37 and the effective rate
decreased from the previous week.
Adjustable rate mortgage (ARM) applications were up
slightly for the week but when rounded remained at a 4 percent market
share. The average interest rate for 5/1
ARMs increased to 2.62 percent from 2.60 percent, with
points increasing to 0.37 from 0.30 and the effective rate increased.
Interest rate information is for loans with an 80 percent
loan to value ratio and points include the origination fee.
Volume and rate information are derived from MBA's Weekly
Mortgage Application Survey of mortgage bankers, commercial banks, and thrifts
covering 75 percent of national mortgage activity. The survey has been conducted since 1990 and
the base period and value for all indices is March 16, 1990.