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Lower Rates Fail to Sustain Mortgage App Winning Streak
interest rates falling to levels last seen almost a year ago, mortgage
application volume retreated slightly after three weeks of iimprovement. The Mortgage Bankers
Association (MBA) said that its Market Composite Index was down 1.2 percent on
a seasonally adjusted basis from the previous week and 2 percent on an
unadjusted basis. The Refinance Index,
which had also enjoyed a three week rally, dropped 1 percent from the week
ended May 16 although refinancing did hold on to a 52 percent share of application
Refinance Index vs 30 Yr Fixed
for home purchases fell for the third straight week. The Purchase Index was down 1 percent on a
seasonally adjusted basis from the previous week and was 2 percent lower on an
unadjusted basis. The unadjusted
Purchase Index was 15 percent below its level during the same week in 2013.
Purchase Index vs 30 Yr Fixed
average contract interest rate for 30 year fixed rate mortgages (FRM) with
conforming balances of $417,000 or less was 4.31 percent, down 2 basis points
from the previous week and the lowest level since June 2013. Points decreased to 0.15 from 0.20 and the
effective rate was down.
30-year FRM (balances over $417,000), decreased from 4.24 percent to 4.23
percent, also the lowest rate since June 2013.
Points jumped to 0.16 from 0.09 and the effective rate increased.
FRM backed by FHA had a contract rate of 4.04 percent, again the lowest rate since
last June, with -0.45 point. The
previous week the rate was 4.06 percent with -0.39 point. The effective rate was also lower than in the
The average contract
interest rate for 15-year
fixed-rate mortgages decreased to 3.42
percent, the lowest level since October
2013, from 3.43 percent, with points decreasing to 0.06 from 0.15.
rate was also down from last week.
(ARM) had an 8 percent share of total applications, unchanged from each of the previous three
weeks. The contract interest rate for
5/1 ARMS decreased to 3.13 percent from 3.14 percent and points fell to 0.19
from 0.29. The effective rate decreased.
MBA's weekly Mortgage Application Survey
covers over 75 percent
of all U.S. retail residential mortgage
applications, and has been conducted since 1990 among mortgage bankers,
commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100
and interest rate information is based on loans with an 80 percent loan to
value ratio. Points include the
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