WASHINGTON, D.C. – November 2, 2011 – (RealEstateRama) — Mortgage applications increased 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 October 28, 2011.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index remained unchanged from the previous week. The Refinance Index decreased 0.2 percent from the previous week. The seasonally adjusted Purchase Index increased 1.8 percent from one week earlier. The unadjusted Purchase Index increased 0.8 percent compared with the previous week and was 2.1 percent lower than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index is down 2.50 percent. The four week moving average is down 0.06 percent for the seasonally adjusted Purchase Index, while this average is down 3.19 percent for the Refinance Index.
The refinance share of overall mortgage application activity decreased to 77.1 percent of total applications from 77.3 percent the previous week, the fourth straight week of decline. The refinance share of conventional mortgage activity decreased to 83.8 percent from 84.1 percent the previous week. The refinance share of government mortgage activity increased to 49.4 percent from 48.6 percent this week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.8 percent from 5.9 percent of total applications from the previous week.
By region, the number of applications in the Pacific region increased the most, rising by 7.5 percent in September while the number of purchase applications in the Mid-Atlantic region decreased the most, falling by 1.9 percent. The number of refinance applications increased the most in the East North Central region, rising by 8.6 percent while the Pacific region increased the least, rising by 0.5 percent. Vermont had the largest increase in refinance applications in September but also the largest decrease in purchase applications. Conversely, Wyoming had the largest increase in purchase applications but the largest decrease in refinance applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.31 percent from 4.33 percent, with points increasing to 0.49 from 0.47 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.69 percent from 4.68 percent, with points increasing to 0.45 from 0.42 (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 decreased to 4.09 percent from 4.11 percent, with points decreasing to 0.51 from 0.61 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.63 percent from 3.62 percent, with points remaining unchanged 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 decreased to 3.09 percent from 3.11 percent, with points remaining unchanged from 0.50 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please contact MBA Research at (202) 557-2830 or ">
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.
