Mortgage applications decreased seven percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 1, 2013. The Market Composite Index, a measure of mortgage loan application volume, decreased seven percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased eight percent compared with the previous week. The Refinance Index decreased eight percent from the previous week. The seasonally adjusted Purchase Index decreased five percent from one week earlier and is at its lowest level since the end of December 2012. The unadjusted Purchase Index decreased seven percent compared with the previous week and was unchanged from the same week one year ago.
The refinance share of mortgage activity decreased to 66 percent of total applications from 67 percent the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at seven percent of total applications.
“We had a busy week with a Fed meeting that left the markets wanting more specificity on the timing of any tapering and then economic data that surprised to the upside," said Quicken Loans economist Bill Banfield. "This put some mild pressure on interest rates compared to the prior week which didn’t help applications levels when homeowners and loan officers are attempting to feed their sweet-tooth on Halloween.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.32 percent from 4.33 percent, with points increasing to 0.42 from 0.26 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.37 percent from 4.36 percent, with points decreasing to 0.26 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 increased to 4.07 percent from 4.06 percent, with points increasing to 0.22 from 0.17 (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 increased to 3.44 percent from 3.42 percent, with points remaining unchanged at 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.08 percent from 3.17 percent, with points decreasing to 0.31 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
