Mortgage applications decreased 1.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 28, 2014. The Market Composite Index, a measure of mortgage loan application volume, decreased 1.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased one percent compared with the previous week. The Refinance Index decreased three percent from the previous week. The seasonally adjusted Purchase Index increased one percent from one week earlier. The unadjusted Purchase Index also increased one percent compared with the previous week and was 17 percent lower than the same week one year ago.
The refinance share of mortgage activity decreased for the eighth straight week to 53 percent of total applications from 54 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at eight percent of total applications.
“Mortgage applications decreased slightly last week, but the number that all will be watching is the number of applications for home purchases which rose last week," said Quicken Loans vice president Bill Banfield. "It will be a real test of economic health to see if home purchases, a driving force of the economy, continue to increase to the expected levels this spring.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) was unchanged at 4.56 percent, with points increasing to 0.31 from 0.29 (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 4.46 percent from 4.45 percent, with points remaining constant at 0.27 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.21 percent from 4.16 percent, with points decreasing to 0.15 from 0.23 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages was unchanged at 3.62 percent, with points decreasing to 0.23 from 0.24 (including the origination fee) for 80 percent LTVs. The effective rate was also unchanged from last week.
The average contract interest rate for 5/1 ARMs increased to 3.25 percent from 3.22 percent, with points increasing to 0.38 from 0.32 (including the origination fee) for 80 percent LTVs. The effective rate increased from last week.
