accounted for much of the increase in mortgage application activity during the
week ended November 30 and the share of that refinancing done through the Home
Affordable Refinancing Program (HARP) also increased. Overall mortgage application volume as
measured by the Mortgage Bankers Association's (MBA) Mortgage Composite Index
rose 4.5 percent on a seasonally adjusted basis and the Refinance Index was up
On an unadjusted basis the index increased 49
percent from the week ended November 23.
That week was shortened by Thanksgiving and the seasonally adjusted
number that week included an adjustment to account for the holiday. The seasonally adjusted Purchase Index
increased 0.1 percent from a week earlier and the unadjusted Index was up 36
percent from Thanksgiving week and was 0.1 percent lower than during the same
week one year earlier.
represented an 83 percent share of all applications; up from 81 percent the
previous week and 27 percent of refinancing applications were for HARP loans
compared to 26 percent one week earlier.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
interest rates were mixed during the week.
The average contract rate for 30-year fixed-rate mortgages (FRM) with
conventional balances (under $417,500) decreased by one basis point to 3.52
percent matching a previous low while points increased from 0.40 to 0.41. The effective rate decreased. The jumbo version of the 30-year FRM (balances
above $417,500) had a slightly higher contract rate than the previous week,
3.79 percent with 0.32 point compared to 3.75 percent with 0.31 point and the
effective rate increased.
The average contract interest rate for 30-year FRM backed
by the FHA decreased to 3.34 percent, matching the lowest rate in the history
of the survey, from 3.36 percent, with points decreasing to
0.62 from 0.65 and the effective rate decreased.
Rates for 15-year FRM decreased to 2.86 percent, the lowest
rate ever tracked by MBA, from 2.89 percent, with points decreasing to 0.27
from 0.35 and the effective rate decreased.
Adjustable rate mortgages garnered only a three percent
share of mortgage applications during the week, down from 4 percent a week
earlier. The average contract interest rate for 5/1 ARMs increased to 2.62
percent from 2.60 percent, with points increasing to 0.40 from
0.37 and the effective rate increased.
interest rates are based on loans with an 80 percent loan-to-value ratio and
points include the origination fee. MBA's
Weekly Mortgage Applications Survey from which this data is derived 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.