Mortgage applications decreased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 24, 2014. The results include an adjustment to account for the Martin Luther King, Jr. holiday. The Market Composite Index, a measure of mortgage loan application volume, decreased 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 9 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week. The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 12 percent lower than the same week one year ago.
The refinance share of mortgage activity decreased to 62 percent of total applications from 64 percent the previous week and is at its lowest level since late September 2013. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7 percent of total applications.
“Purchase applications experienced a slight gain last week and it will be interesting to see if weather related issues impact applications and home sales in the short run," said Quicken Loans Vice President Bill Banfield. "What’s clear is that interest rates have fallen steadily since the beginning of the year opening up an opportunity for mortgage rates that we haven’t seen since November of last year.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.52 percent, the lowest rate since the week ending November 29, 2013, from 4.57 percent, with points increasing to 0.40 from 0.36 (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, the lowest rate since the week ending November 15, 2013, from 4.57 percent, with points increasing to 0.27 from 0.18 (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 4.18 percent, the lowest rate since the week ending November 29, 2013, from 4.24 percent, with points increasing to 0.33 from 0.23 (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 decreased to 3.59 percent, the lowest rate since the week ending November 29, 2013, from 3.68 percent, with points decreasing to 0.26 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.25 percent from 3.23 percent, with points decreasing to 0.33 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
