Mortgage applications increased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 19, 2013. The Market Composite Index, a measure of mortgage loan application volume, increased 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased one percent compared with the previous week. The Refinance Index increased 0.3 percent from the previous week. The seasonally adjusted Purchase Index increased 0.3 percent from one week earlier to the highest level since May 2010. The unadjusted Purchase Index increased one percent compared with the previous week and was 18 percent higher than the same week one year ago.
The refinance share of mortgage activity remained unchanged at 75 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4 percent of total applications. The HARP share of refinance applications increased from 31 percent last week to 32 percent this week, the highest level since MBA began tracking HARP applications in February 2012.
“Despite a housing market that is struggling for available inventory, the continued demand for homeownership is music to the economy’s ears," said Quicken Loans Chief Economist Bob Walters. "Better yet, many traditional buyers seem to be re-entering the market making for a stronger recovery.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.65 percent from 3.67 percent, with points decreasing to 0.41 from 0.50 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.75 percent from 3.77 percent, with points increasing to 0.37 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.37 percent, with points increasing to 0.64 from 0.55 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.89 percent from 2.91 percent, with points increasing to 0.40 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 2.62 percent from 2.57 percent, with points decreasing to 0.21 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
