Mortgage applications decreased 1.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 5, 2012. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased one percent compared with the previous week. The Refinance Index decreased two percent from the previous week. The seasonally adjusted Purchase Index increased two percent from one week earlier. The unadjusted Purchase Index increased three percent compared with the previous week and was 12 percent higher than the same week one year ago.
“Refinance applications declined somewhat last week although volume is still near three-year highs, and purchase applications increased to the highest level since June, with both conventional and government volumes increasing,” said Mike Fratantoni, MBA’s VP of research and economics. “Rates on 30-year fixed-rate loans remain historically low, benefitting both prospective homebuyers and those seeking to refinance.”
The refinance share of mortgage activity remained unchanged at 83.0 percent from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 3.9 percent of total applications, matching the lowest level since December 2009.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.56 percent from 3.53 percent, with points increasing to 0.39 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The 30 year contract rate increased for the first time after declining for six consecutive weeks. 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 3.74 percent, the lowest rate in the history of the survey, from 3.82 percent, with points increasing to 0.40 from 0.32 (including the origination fee) for 80 percent LTVs.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.34 percent, the lowest rate in the history of the survey, from 3.37 percent, with points increasing to 0.71 from 0.36 (including the origination fee) for 80 percent LTVs.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.88 percent, the lowest rate in the history of the survey, from 2.90 percent, with points increasing to 0.40 from 0.27 (including the origination fee) for 80 percent LTVs.
The average contract interest rate for 5/1 ARMs increased to 2.60 percent from 2.59 percent, with points increasing to 0.36 from 0.34 (including the origination fee) for 80 percent LTVs.
