Mortgage application activity was down during
the Thanksgiving holiday shortened week ended November 23. The Mortgage Bankers Association's (MBA's)
Market Composite Index, a measure of application volume, declined 0.9 percent
on a seasonally adjusted basis and 24 percent on an unadjusted basis compared
to the previous week. The seasonally
adjusted number includes an additional adjustment to account for the holiday.
Refinancing represented 81 percent of
applications, the same as the previous week. The Refinance Index was down 2 percent from
the previous week while the seasonally adjusted Purchase Index increased 3
percent. The unadjusted Purchase Index
was down 24 percent from the previous week and was 8 percent higher than during
the same period in 2011.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
Contract interest rates were unchanged
or declined slightly during the week.
The average contract rate for 30-year fixed-rate mortgages (FRM) with
conforming balances of $417,500 or less decreased 1 basis point to 3.53 percent
with points unchanged at 0.40. Rates for
the jumbo version of the 30-year FRM also declined by 1 basis point to 3.75
percent while points decreased from 0.40 to 0.31. The effective rate of both the conforming and
jumbo loans decreased from the previous week. The contract rate for 15-year FRM was
unchanged at 2.89 percent with points increasing to 0.35 from 0.25 and the
effective rate rose correspondingly.
Thirty-year FRM backed by FHA carried an
average contract interest rate unchanged from the previous week at 3.36
percent. Points increased to 0.65 from
0.63 and the effective rate increased.
The government share of purchase applications decreased to 33 percent,
the lowest share since early 2009.
The rate for 5/1 adjustable rate
mortgages (ARM) decreased to 2.60 percent from 2.62 percent with points
remaining at 0.37 and the effective rate decreased. ARMs once again accounted for 4 percent of
Interest rate statistics are based on
mortgages with loan-to-value ratios of 80 percent and points include the
MBA's survey, which has been conducted
weekly since 1990, covers over 75 percent of U.S. retail residential mortgage
applications. Respondents include
mortgage bankers, commercial banks, and thrifts. Base value and period for all indices is
March 16, 1990=100.