Mortgage application volume takes a dive
According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 15, 2013, mortgage application volume dipped 2.3 percent from one week earlier, adjusted to take into account the Veteran’s Day holiday.
The Market Composite Index, fell 2.3 percent on a seasonally adjusted basis from one week earlier, dipping 13 percent on an unadjusted basis.
The Refinance Index decreased 7.0 percent from the previous week, yet the seasonally adjusted Purchase Index actually increased 6.0 percent (dipping 8.0 percent on an unadjusted basis), falling 3.0 percent from the same week one year ago.
The refinance share of mortgage activity decreased to 64 percent of total applications from 66 percent the previous week, after spending most of 2012 hovering around 81 percent.
Average contract interest rates
According to the MBA:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.46 percent from 4.44 percent, with points decreasing to 0.38 from 0.44 (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 $417,000) decreased to 4.47 percent from 4.48 percent, with points decreasing to 0.22 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 30-year fixed-rate mortgages backed by the FHA decreased to 4.14 percent from 4.16 percent, with points decreasing to 0.25 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 15-year fixed-rate mortgages was unchanged at 3.52 percent, with points increasing to 0.33 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 3.12 percent from 3.11 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.
