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Mortgage Application Volume Bounces Bank from Holiday Lull
Despite the shorter holiday week,
mortgage applications rose 11.7 percent on a seasonally adjusted basis during
the week ended January 4 and 49 percent on a seasonally unadjusted basis. The Mortgage Bankers Association's (MBA) Market Composite Index's seasonally
adjusted figure included an additional adjustment to account for the New Years Day
The Refinance Index increased 12 percent from Christmas week and the
refinancing share of mortgage activity remained constant at 82 percent. The share of refinancing done through the
Home Affordable Refinancing Program (HARP) decreased to 25 percent from 27
percent the prior week.
The Purchase Index was up 10 percent on a seasonally
adjusted basis and 49 percent on an unadjusted basis compared to the week ended
December 28. Compared to the last pre-holiday week (the week ended December 21)
the Refinancing Index was up less than one percent and the seasonally adjusted Purchasing
Index was down 8 percent.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
Both contract and effective mortgage rates rose during the
week with the rate for the 30-year fixed-rate mortgage (FRM) reaching its
highest contract level since November 2012.
The average rate for the conventional 30-year FRM (with balances of
$417,500 or less) increased to 3.61 percent with 0.41 point from 3.52 percent
with 0.48 point.
The average contract interest rate for 30-year fixed-rate
mortgages with jumbo loan balances (greater than $417,500) increased to 3.78
percent from 3.75 percent, with points increasing to 0.38 from
FHA-backed 30-year FRM rates increased to an average of 3.35
percent from 3.34 percent, with points increasing to 0.69 from
Fifteen-year FRM had an average rate of 2.88 percent with
0.39 point compared to 2.86 percent with 0.27 point the previous week.
The average contract interest rate for 5/1 adjustable rate
mortgages (ARMs) decreased to 2.64 percent
from 2.65 percent, with points decreasing to 0.37 from 0.42.
Application and rate information is derived from the Weekly
Mortgage Application Survey which MBA has conducted since 1990. Respondents include mortgage bankers,
commercial banks, and thrifts. Rates are
based on mortgages with a loan-to-value ratio of 80 percent and points include
the application fee. Base period and
value for all indexes is March 16, 1990=100.
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