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 May 3, 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 seven percent compared with the previous week. The Refinance Index increased eight percent from the previous week to the highest level since December 2012. The gain in the Refinance Index was due to increases in both the conventional and government refinance indices of 8.8 percent and 5.7 percent respectively. The seasonally adjusted Purchase Index increased two percent from one week earlier to the highest level since May 2010. The unadjusted Purchase Index increased three percent compared with the previous week and was 12 percent higher than the same week one year ago.
The refinance share of mortgage activity increased to 76 percent of total applications from 75 percent the previous week to the highest level since February 2013. The adjustable-rate mortgage (ARM) share of activity increased to four percent of total applications. The HARP share of refinance applications fell from 34 percent last week to 30 percent this week. The government share of purchase applications declined to 29.1 percent, which is a two year low.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.59 percent, the lowest rate since December 2012, from 3.60 percent, with points increasing to 0.33 from 0.30 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rateincreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.79 percent from 3.80 percent, with points decreasing to 0.20 from 0.29 (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 3.35 percent from 3.34 percent, with points increasing to 0.57 from 0.37 (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 2.81 percent, the lowest rate in the history of the survey, from 2.84 percent, with points increasing to 0.29 from 0.26 (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 2.53 percent, the lowest rate in the history of the survey, from 2.55 percent, with points decreasing to 0.15 from 0.22 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
