Mortgage Applications Fall 4.5% Last Week, Rates Steady

News

The volume of mortgage applications for
both purchasing and refinancing fell last week according to the Mortgage
Bankers Association’s (MBA) Weekly Mortgage Applications Survey.  The MBA’s Market Composite Index which
measures that volume was down 4.5 percent on a seasonally adjusted basis and
4.7 percent on an unadjusted basis for the week that ended August 10.

The Refinance Index dropped 5 percent from
the week ended August 3 and the seasonally adjusted Purchase Index lost 2
percent.  The Purchase
Index was down 3
percent on an unadjusted basis from the previous week but MBA did not provide annual
information for purchase applications. 
Refinancing as a share of all application activity declined fractionally
but remained at about 81 percent.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

With
the exception of 15-year fixed-rate mortgages (FRM), mortgage rates during the
week remained flat.  That rate increased from 3.08 percent with 0.41
point to 3.12 percent with 0.40 point and the effective rate also increased.

The
average contract
interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained
unchanged at 3.76 percent, with points increasing to 0.47 from
0.46 and the effective rate increased. 
The rate for jumbo 30-year FRM (balances greater than $417,500)
decreased one basis point with points dropping to 0.27 from 0.35 and the
effective rate declining.  

The FHA-backed
30-year fixed-rate mortgage rate decreased to 3.53 percent from 3.54 percent,
with points unchanged at 0.49.  The effective rate
decreased from the previous week.

Hybrid
5/1 adjustable rate mortgage (ARM) rates averaged 2.73 percent with 0.36 point
compared to 2.72 percent with 0.40 point and the effective rate decreased.  ARMs of all types accounted for only 4 percent
of applications during the week.

All rates are for 80 percent loan-to-value mortgages and points
include the origination fee.

MBA’s weekly survey is taken among mortgage bankers and
commercial banks and thrifts and covers over 75 percent of all U.S. retail
residential mortgage applications. 
Conducted weekly since 1990, its base period and value for its indices is
March 16, 1990=100.

 

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