Mortgage Apps See 2.3 Percent Weekly Decline

Mortgage applications decreased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Nov. 15, 2013. This week’s results include an adjustment to account for the Veteran’s Day holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13 percent compared with the previous week. The Refinance Index decreased seven percent from the previous week. The seasonally adjusted Purchase Index increased six percent from one week earlier. The unadjusted Purchase Index decreased eight percent compared with the previous week and was three percent lower than the same week one year ago. The refinance share of mortgage activity decreased to 64 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at seven percent of total applications. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.46 percent from 4.44 percent, with points decreasing to 0.38 from  0.44 (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 4.47 percent from 4.48 percent, with points decreasing to 0.22 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.14 percent from 4.16 percent, with points decreasing to 0.25 from 0.32 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages was unchanged at 3.52 percent, with points increasing to 0.33 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 5/1 ARMs increased to 3.12 percent from 3.11 percent, with points increasing to 0.37 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.