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Mortgage application volume slides yet again

Mortgage application volume slid again this week, but the Mortgage Banker’s Association points out a silver lining to the new data reported today.

Mortgage application volume falls

According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 5, 2012, the overall volume of mortgage applications decreased 1.2 percent from the week prior. Refinance and new purchase applications both fell 2.0 percent from the previous week, and the share of refinances remained at 83 percent.

According to the MBA, the adjustable-rate mortgage (ARM) share of activity decreased to 3.9 percent of total applications, matching the lowest level since December 2009. The government share of purchase applications was unchanged from last week at 35.5 percent, the lowest level since the beginning of the series.

“Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Rates on 30-year fixed-rate loans remain historically low, benefitting both prospective homebuyers and those seeking to refinance.”

Average contract interest 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) increased to 3.56 percent from 3.53 percent, with points increasing to 0.39 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The 30 year contract rate increased for the first time after declining for six consecutive weeks. The effective rate increased from last week.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.74 percent, the lowest rate in the history of the survey, from 3.82 percent, with points increasing to 0.40 from 0.32 (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, the lowest rate in the history of the survey, from 3.37 percent, with points increasing to 0.71 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88 percent, the lowest rate in the history of the survey, from 2.90 percent, with points increasing to 0.40 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  • The average contract interest rate for 5/1 ARMs increased to 2.60 percent from 2.59 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased 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.

2 Comments

2 Comments

  1. Silicon Valley Lifestyles - James Endo Team

    October 10, 2012 at 8:44 pm

    Really?

  2. AgentGenius

    October 11, 2012 at 10:30 am

    yep

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