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Mortgage Apps Jump Five Percent-Plus Over Last Week

Mortgage applications increased 5.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Sept. 20, 2013. The Market Composite Index, a measure of mortgage loan application volume, increased 5.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased five percent compared with the previous week. The Refinance Index increased five percent from the previous week. The seasonally adjusted Purchase Index increased seven percent from one week earlier. The unadjusted Purchase Index increased five percent compared with the previous week and was seven percent higher than the same week one year ago. The Purchase Index was at its highest level since July 2013.
The refinance share of mortgage activity was unchanged at 61 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at seven percent of total applications. The government share of purchase applications decreased to 28.4 percent from 29.9 percent, the lowest level since early August and close to the series low of 28.2 percent in June 2013. The HARP share of refinance applications increased to 41 percent from 40 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 4.62 percent from 4.75 percent,with points increasing to 0.41 from 0.39 (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 4.66 percent from 4.83 percent,with points decreasing to 0.29 from 0.33 (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 decreased to 4.32 percent from 4.50 percent,with points decreasing to 0.37 from 0.41 (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 3.68 percent from 3.81 percent, with points decreasing to 0.28 from 0.34 (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 3.39 percent from 3.54 percent,with points decreasing to 0.35 from 0.43 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
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