Mortgage applications increased seven percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 18, 2013. The Market Composite Index, a measure of mortgage loan application volume, increased seven percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased eight percent compared with the previous week. The Refinance Index increased eight percent from the previous week. The seasonally adjusted Purchase Index increased three percent from one week earlier and was at its highest level since May of 2010, immediately following the expiration of the homebuyer tax credit. This increase in purchase applications was primarily for conventional loans, as the seasonally adjusted Conventional Purchase Index was at its highest level since October of 2009. The unadjusted Purchase Index increased nine percent compared with the previous week and was 26 percent higher than the same week one year ago.
The refinance share of mortgage activity was unchanged from the previous week at 82 percent of total applications. The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.62 percent from 3.61 percent, with points increasing to 0.43 from 0.38 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The contract interest rate for 30-year fixed mortgages has increased for five of the last six 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 3.85 percent from 3.88 percent, with points decreasing to 0.34 from 0.38 (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 increased to 3.40 percent from 3.39 percent, with points decreasing to 0.53 from 0.58 (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 decreased to 2.87 percent from 2.88 percent, with points increasing to 0.39 from 0.27 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.61 percent from 2.66 percent, with points decreasing to 0.32 from 0.34 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
