The slight rise in mortgage application
volume during the week ended December 6 was the first increase in six weeks. The
Mortgage Bankers Association said that its Market Composite Index was up 1
percent on a seasonally adjusted basis from the previous week and 43 percent on
an unadjusted basis. The week that ended
November 29 had included the Thanksgiving holiday and applications were down by
40 percent during that week.
The Refinance Index increased 2
percent from Thanksgiving week but was down 16 percent from the more typical
week previous to that. Sixty-five
percent of all applications were for refinancing compared to a 63 percent share
the previous week.
Refinance Index vs 30 Yr Fixed
The seasonally adjusted Purchase
Index increased 1 percent from the previous week and was 3 percent lower than the
week prior to Thanksgiving. The
unadjusted Purchase Index was up 37 percent on a week-over-week basis but down
10 percent year-over-year.
Purchase Index vs 30 Yr Fixed
Rates across the board, both
contract and effective, were higher across the board with all fixed rates
rising to their highest level since last September. The average contract interest rate for
30-year fixed-rate mortgages (FRM) with conforming loan balances below $417,000
increased to 4.61 percent from 4.51 percent.
Points decreased 0.26 from 0.38.
The contract rate for jumbo 30-year FRM
(loan balances above $417,000) increased 10 basis points to 4.59 percent, Points
decreased to 0.15 from 0.24.
The rate for 30-year FRM backed by
FHA jumped to 4.30 percent from 4.17 percent and points increased to 0.38 from
Fifteen-year FRM had an
average rate of 3.66 percent compared to 3.56 percent the week before. Points decreased from 0.32 to 0.31.
The share of
applications for adjustable rate mortgages (ARMs) has been slowing rising from
the 3 percent range where it has languished for years. Last week ARMs received 8.1 percent of
applications, the largest share since July 2008. The average rate for a 5/1 ARM
increased to 3.11 percent from 3.09 percent and points increased to 0.35 from
Rates and application
volume information are derived from MBA's Weekly Mortgage Applications Survey
which has been conducted since 1990. Information is provided by mortgage
bankers, commercial banks and thrifts and covers over 75 percent of all U.S.
retail residential mortgage applications.
Interest rates are quoted for
loans with an 80 percent loan-to-value ratio and points include the origination
fee. The base period and value for all
indexes is March 16, 1990=100.