Mortgage applications decreased 1.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Feb. 15, 2013. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.7 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 decreased two percent from one week earlier. The unadjusted Purchase Index increased three percent compared with the previous week and was 17 percent higher than the same week one year ago.
The refinance share of mortgage activity decreased to 77 percent of total applications, the lowest level since May 2012, from 78 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications.
“This is the second straight week of declines in mortgage applications. While we have seen steady improvement in many housing sectors, the housing market is still waiting for big waves to push homebuyer confidence higher," said Quicken Loans Chief Economist Bob Walters.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.78 percent, the highest rate since August 2012, from 3.75 percent, with points decreasing to 0.40 from 0.43 (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 nine of the last 10 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 3.94 percent from 3.98 percent, with points increasing to 0.40 from 0.36 (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 3.54 percent, the highest rate since August 2012, from 3.53 percent, with points increasing to 0.40 from 0.39 (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 increased to 3.03 percent, the highest rate since September 2012, from 3.01 percent, with points increasing to 0.38 from 0.28 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged at 2.66 percent, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
