Mortgage applications decreased 7.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 10, 2013. The Market Composite Index, a measure of mortgage loan application volume, decreased 7.3 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 also decreased four percent compared with the previous week and was 10 percent higher than the same week one year ago.
The refinance share of mortgage activity remained constant at 76 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity remained constant at four percent of total applications.
After declining for seven weeks straight, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.67 percent from 3.59 percent, with points increasing to 0.41 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. This rate is at its highest level since the week ending April 12, 2013. The effective rate increased from last week.
“While the drop in mortgage applications is disappointing, it is important not to grow overly concerned about week-to-week figures," said Quicken Loans Chief Economist Bob Walters. "The real question is if the rise in home prices is real and sustainable, or a blip driven by a market that is lacking a healthy selection of homes.”
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.87 percent from 3.79 percent, with points increasing to 0.25 from 0.20 (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 increased to 3.43 percent from 3.35 percent, with points decreasing to 0.16 from 0.57 (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 2.88 percent from 2.81 percent, with points increasing to 0.31 from 0.29 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased to 2.55 percent from 2.53 percent, with points increasing to 0.23 from 0.15 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
