Mortgage application volume rises
Including an adjustment for the Memorial Day holiday, mortgage applications increased 5.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 7, 2013. On an unadjusted basis, the volume actually rose 16.0 percent compared to the previous week.
The Refinance Index rose 5.0 percent from one week earlier, but remains the sore spot in this indicator, remaining 11.0 percent lower than the two weeks prior and 36 percent lower than last month’s peak. The seasonally adjusted Purchase index rose 5.0 percent, while improving 14.0 percent on an unadjusted basis.
The refinance share of mortgage activity increased to 69 percent of total applications from 68 percent the previous week after remaining around 80 percent for most of 2012. The adjustable-rate mortgage (ARM) share of activity increased to 7 percent of total applications and the HARP share of refinance applications fell from 32 percent the prior week to 29 percent.
Average contract interest rates
According to the MBA:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.15 percent, the highest rate since March 2012, from 4.07 percent, with points increasing to 0.48 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. 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) increased to 4.25 percent, the highest rate since May 2012, from 4.20 percent, with points increasing to 0.32 from 0.28 (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 increased to 3.81 percent, the highest rate since April 2012, from 3.76 percent, with points decreasing to 0.26 from 0.32 (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 increased to 3.32 percent, the highest rate since April 2012, from 3.23 percent, with points remaining unchanged at 0.38 (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 2.78 percent, the highest rate since June 2012, from 2.76 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.