WASHINGTON, D.C. – October 19, 2011 – (RealEstateRama) — Mortgage applications decreased 14.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 14, 2011, which included the Columbus Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 14.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 14.9 percent compared with the previous week. The Refinance Index decreased 16.6 percent from the previous week. The seasonally adjusted Purchase Index decreased 8.8 percent from one week earlier and is at the lowest level in the survey since December 1996. Both conventional and government purchase activity declined last week, with the Conventional Purchase Index decreasing 11.0 percent and the Government Purchase Index decreasing 5.9 percent from the previous week. The unadjusted Purchase Index decreased 8.6 percent compared with the previous week and was 5.1 percent lower than the same week one year ago.
While all the other indices fell year over year, the Government Purchase Index increased 3.3 percent on an unadjusted basis, the second straight increase. The government share of purchase activity has increased three consecutive weeks to 43.5, the highest level since April 2011.
The four week moving average for the seasonally adjusted Market Index is down 2.36 percent. The four week moving average is down 1.53 percent for the seasonally adjusted Purchase Index, while this average is down 2.58 percent for the Refinance Index.
The refinance share of mortgage activity decreased to 77.6 percent of total applications from 79.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 6.0 percent of total applications from the previous week.
The share of purchase applications in the Pacific region increased in September to 19.6 percent from 18.9 percent in August while the share in the New England, East North Central and South Atlantic regions fell. The share of refinance applications in the Pacific decreased from last month but increased in the Mid-Atlantic, East North Central and New England regions. Wyoming had the largest increase in purchase applications while Vermont had the largest increase in refinance applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.33 percent from 4.25 percent, with points increasing to 0.48 from 0.47(including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.64 percent from 4.59 percent, with points decreasing to 0.45 from 0.49 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.12 percent from 4.06 percent, with points decreasing to 0.53 from 0.58 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.61 percent from 3.53 percent, with points decreasing to 0.43 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate also increased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.08 percent from 3.03 percent, with points decreasing to 0.48 from 0.54 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
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The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation’s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA’s Web site: www.mortgagebankers.org.
