Mortgage applications stagnant
According to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 2, mortgage applications rose 0.2 percent in volume from the week prior, after seven consecutive weeks of volume falling. While an increase is a positive and welcome sign, it is so slight that it is not quite icing on any cake.
Total mortgage loan application volume on an unadjusted basis was actually unchanged compared to the previous week.
The Refinance Index measuring the refinance portion of mortgage applications was also unchanged while the Purchase Index improved 1.0 percent from the previous week on a seasionally adjusted basis as well as an unadjusted basis. Purchase applications have been the sign of hope for the industry, and while down in recent weeks, it is 8.0 percent higher than this same week in 2012.
The refinance share of mortgage activity was unchanged at 63 percent of total applications from previous week after hovering near 80 percent for most of 2012, marking a slowdown in refis. The adjustable-rate mortgage (ARM) share of activity remained constant at 6.0 percent of total applications. The HARP share of refinance applications decreased to 36 percent from 37 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) increased to 4.61 percent from 4.58 percent, with points increasing to 0.42 from 0.38 (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) was unchanged at 4.64 percent, with points decreasing to 0.34 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 30-year fixed-rate mortgages backed by the FHA increased to 4.33 percent from 4.30 percent, with points decreasing to 0.26 from 0.31 (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 3.66 percent from 3.67 percent, with points increasing to 0.43 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 was unchanged at 3.39 percent, with points increasing to 0.37 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
