Despite Record-Low Rates, Mortgage Apps Experience 4.2 Percent Dip – NMP Skip to main content

Despite Record-Low Rates, Mortgage Apps Experience 4.2 Percent Dip

Oct 17, 2012

Mortgage applications decreased 4.2 percent from one week earlier, according to data from the Weekly Mortgage Applications Survey conducted by the Mortgage Bankers Association’s (MBA) for the week ending Oct. 12, 2012. This week’s results include an adjustment to account for the Columbus Day holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14 percent compared with the previous week. The Refinance Index decreased five percent from the previous week. The seasonally adjusted Purchase Index increased one percent from one week earlier. This is the highest Purchase Index observed in the survey since early June 2012. The unadjusted Purchase Index decreased nine percent compared with the previous week and was 12 percent higher than the same week one year ago. The refinance share of mortgage activity decreased to 82 percent of total applications from 83 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained constant at 4 percent of total applications. The HARP share of refinance applications increased to 22 percent from 18 percent the prior week. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.57 percent from 3.56 percent, with points increasing to 0.44 from 0.39 (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 3.81 percent from 3.74 percent, with points increasing to 0.42 from 0.40 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained constant at 3.34 percent, with points increasing to 0.82 from 0.71 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.87 percent from 2.88 percent, with points decreasing to 0.39 from 0.40 (including the origination fee) for 80 percent LTVs. The 15-year contract rate has decreased for eight consecutive weeks and is a new record low in the survey. The effective rate decreased from last week. The average contract interest rate for 5/1 ARMs decreased to 2.59 percent from 2.60 percent, with points decreasing to 0.35 from 0.36 (including the origination fee) for 80 percent LTVs. The contract rate matched the lowest rate in the series. The effective rate decreased from last week.
About the author
Published
Oct 17, 2012
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Jul 02, 2026
President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Jun 24, 2026
Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Jun 18, 2026