Mortgage applications decreased 4.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 10, 2012. The Market Composite Index, a measure of mortgage loan application volume, decreased 4.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 4.7 percent compared with the previous week. The Refinance Index decreased five percent from the previous week. The seasonally adjusted Purchase Index decreased two percent from one week earlier. The unadjusted Purchase Index decreased three percent compared with the previous week. The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. The refinance share of mortgage activity decreased slightly from the previous week and is about 81 percent of total applications. The adjustable-rate mortgage (ARM) share of activity is almost 4 percent of total applications. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained unchanged at 3.76 percent, with points increasing to 0.47 from 0.46 (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) decreased to 4.03 percent from 4.04 percent, with points decreasing to 0.27 from 0.35 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.53 percent from 3.54 percent, with points remaining unchanged at 0.49 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages increased to 3.12 percent from 3.08 percent, with points decreasing to 0.40 from 0.41 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week. The average contract interest rate for 5/1 ARMs increased to 2.73 percent from 2.72 percent, with points decreasing to 0.36 from 0.40 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
