Mortgage applications increased 1.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Aug. 30, 2013. The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 0.3 percent compared with the previous week. The Refinance Index increased two percent from the previous week. The seasonally adjusted Purchase Index decreased 0.4 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.
The refinance share of mortgage activity increased to 61 percent of total applications from 60 percent the previous week.The adjustable-rate mortgage (ARM) share of activity decreased to seven percent of total applications. The HARP share of refinance applications increased to 38 percent, from 35 percent the week before, and is the highest since MBA started tracking this measure in early 2012.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.73 percent from 4.80 percent,with points decreasing to 0.33 from 0.41 (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 $417,000) decreased to 4.71 percent from 4.78 percent,with points decreasing to 0.25 from 0.34 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week. This is the second consecutive week that the 30-year fixed interest rate for jumbo loans has been lower than the 30-year fixed rate for conforming loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.48 percent from 4.52 percent,with points decreasing to 0.03 from 0.32 (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 decreased to 3.75 percent from 3.84 percent, with points decreasing to 0.30 from 0.35 (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 3.49 percent from 3.50 percent,with points remaining unchanged at 0.37 (including the origination fee) for 80 percent LTVs. The effective rate decreased from last week.
