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Mortgage Applications Slightly Lower; Possible Holiday Effects
Mortgage application activity retreated again during the
holiday-shortened week ended May 30. The
Mortgage Bankers Association (MBA) said that mortgage applications as measured
by its Market Composite Index decreased during the week by 3.1 percent on a
seasonally adjusted basis and were down 14 percent on a non-seasonally adjusted
basis. The week's results were adjusted
to account for the Memorial Day holiday (but can't adjust for the fact that some Americans will have added a day or two to the long weekend for family vacations and the like).
The Refinance Index was 3 percent lower than during the week ended May 23
but the market share of refinancing increased to 53 percent from 52 percent of
Refinance Index vs 30 Yr Fixed
adjusted Purchase Index fell 4 percent from the previous week and the
unadjusted Purchase index was 15 percent lower than the week before and 17
percent below the index for the same week in 2013.
Purchase Index vs 30 Yr Fixed
covered by MBA's Weekly Mortgage Applications Survey had lower contract
interest rates and effective rates than the previous week and rates for most
products were at their lowest levels in a year or more.
The average contract interest rate for 30-year
fixed-rate mortgages (FRM) with conforming loan balances ($417,000 or less) decreased to 4.26 percent from 4.31 percent, with points decreasing to 0.13
from 0.15. The contract rate for
jumbo 30-year FRM with balances in excess of $417000 decreased to 4.22 percent
with 0.11 point from 4.23 percent with 0.16 point.
The average contract
interest rate for 30-year
fixed-rate mortgages backed
by the FHA fell 5 basis points to 3.99 percent and points decreased to -0.46 from -0.45.
had an average rate of 3.39 percent compared to 3.42 percent the previous
week. Points increased to 0.07 from
The average contract
interest rate for 5/1 adjustable rate mortgages (ARMs) decreased
to 3.11 percent from 3.13 percent,
with points decreasing to 0.05 from 0.19. ARMs had an 8 percent share of mortgage
applications, unchanged since the week ended May 2.
MBA's survey covers
over 75 percent
of all U.S. retail residential mortgage
applications, and has been conducted since 1990.
Respondents include mortgage
bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100. Interest rate information is for loans with
an 80 percent loan-to-value ratio and points include the origination fee.
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