Mortgage application volume continues to increase

Mortgage application volume continues improving

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 19, 2013, mortgage application volume rose 0.2 percent from the week prior, and although only a slight improvement, it marks continued improvement, particularly with new loan application as the refinance share of the mortgage activity remained at 75 percent of all applications.

The Market Composite Index rose 0.2 percent on a seasonally adjusted basis from one week earlier, rising 1.0 percent on an unadjusted basis compared with the previous week. The Refinance Index increased 0.3 percent from the previous week and the seasonally adjusted Purchase Index increased 0.3 percent from one week earlier and 1.0 percent on an unadjusted basis.

The volume of purchase applications hit their highest level since May 2010, marking slight, but continued signs of improving health for the housing sector.

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) decreased to 3.65 percent from 3.67 percent, with points decreasing to 0.41 from 0.50 (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 3.75 percent from 3.77 percent, with points increasing to 0.37 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 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.37 percent, with points increasing to 0.64 from 0.55 (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 2.89 percent from 2.91 percent, with points increasing to 0.40 from 0.34 (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 increased to 2.62 percent from 2.57 percent, with points decreasing to 0.21 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.