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Housing News

Mortgage application volume back up, East Coast coming back online

After weeks of sliding, the Mortgage Bankers Association is reporting a small surge in mortgage application volume, noting the post-Superstorm Sandy decline in recent weeks.

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Mortgage application volume up

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 9, 2012, mortgage applications increased 12.6 percent from one week earlier, after weeks of decline.

The Market Composite Index, a measure of mortgage loan application volume, rose 12.6 percent from one week earlier, while the Refinance Index increased 13.0 percent, ending a five-week decline, and the Purchase Index rose 11.0 percent. The refinance share of mortgage activity rose to 81.0 percent of all applications from 80.0 percent the the previous week, continuing to hover around the same levels it has been at for months.

“Following the decrease in applications two weeks ago due to the effects of superstorm Sandy, mortgage applications in many East Coast states rebounded strongly this week,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Application volume in New Jersey more than doubled over the week, while volume in Connecticut and New York increased more than 60 percent. In addition to the rebound in the states impacted by the storm, the 30 year fixed mortgage rate reached a new record low in the survey.”

Average contract rates

According to the MBA:

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  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.52 percent from 3.61 percent, with points decreasing to 0.41 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. This record low rate for 30 year fixed mortgages beats the previous survey low of 3.53 percent for the week ending September 28, 2012. The effective rate decreased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.83 percent from 3.88 percent, with points increasing to 0.41 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.34 percent from 3.37 percent, with points increasing to 0.78 from 0.75 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88 percent from 2.95 percent, with points decreasing to 0.37 from 0.40 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  • The average contract interest rate for 5/1 ARMs decreased to 2.60 percent from 2.61 percent, with points decreasing to 0.30 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.

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