Mortgage applications decreased 7.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 15, 2013. The Market Composite Index, a measure of mortgage loan application volume, decreased 7.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased seven percent compared with the previous week. The Refinance Index decreased eight percent from the previous week. The seasonally adjusted Purchase Index decreased four percent from one week earlier. The unadjusted Purchase Index decreased three percent compared with the previous week and was six percent higher than the same week one year ago.
“Despite rates staying low, mortgage applications fell 7.1 percent last week," said Quicken Loans Chief Economist Bob Walters. "With spring right around the corner, which marks the start of the home buying season, I’d expect to see much improved figures in the coming months.”
The refinance share of mortgage activity decreased to 75 percent of total applications from 76 percent the previous week. The refinance share has decreased for ten straight weeks and is at its lowest level since early May 2012. The adjustable-rate mortgage (ARM) share of activity remained constant at five percent of total applications. The HARP share of refinance applications increased to 31 percent from 30 percent the prior week. The government share of purchase applications decreased to 33 percent and is at its lowest level since January 2009.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.82 percent from 3.81 percent, with points decreasing to 0.38 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 3.95 percent from 3.90 percent, with points decreasing to 0.36 from 0.46 (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 was unchanged at 3.53percent, with points decreasing to 0.31 from 0.38 (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 3.02 percent from 3.01 percent, with points decreasing to 0.36 from 0.42 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.59 percent from 2.62 percent, with points increasing to 0.40 from 0.33 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
