Mortgage application volume continues to fall
Mortgage application volume fell 2.6 percent from the week prior, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending July 12, 2013.
The Market Composite Index, measuring total loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier, falling 22.0 percent on an unadjusted basis.
The Refinance Index decreased 4.0 percent from the previous week, hitting a two year low. The seasonally adjusted Purchase Index increased 1.0 percent from one week earlier, although it fell 26.0 percent compared with the previous week, yet was 5.0 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 63 percent of total applications from 64 percent the previous week and is at its lowest level since April 2011. The adjustable-rate mortgage (ARM) share of activity increased to 7 percent of total applications. The HARP share of refinance applications decreased to 34 percent from 35 percent the week prior.
Average contract interest rates
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) was unchanged at 4.68 percent, with points decreasing to 0.42 from 0.46 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. 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 4.81 percent from 4.86 percent, with points increasing to 0.40 from 0.37 (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 increased to 4.38 percent from 4.37 percent, with points decreasing to 0.22 from 0.39 (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 3.70 percent from 3.76 percent, with points decreasing to 0.38 from 0.41 (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 3.39 percent from 3.40 percent, with points decreasing to 0.37 from 0.54 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
