Application Volume, Mortgage Rates Drop During Holiday Week

by devteam July 11th, 2012 | Share

This morning the Mortgage BankersrnAssociation (MBA) released its Market Composite Index for the holiday shortenedrnweek ended July 6 and reported that, including an adjustment for IndependencernDay, mortgage applications decreased 2.1 percent on a seasonally adjusted basisrnfrom the previous week.  Withoutrnadjustments the composite, a measure of mortgage applications volume, was down 22rnpercent. </p

The Refinance Index decreased 3rnpercent from the previous week and the refinancing share of all applicationsrnfell to 77.0 percent from 78.0 percent. rnThe seasonally adjusted Purchase Index was up 3 percent from thernprevious week but was 17 percent lower on an unadjusted basis and 3 percentrnbelow the volume during the same week in 2011.</p

Purchase Index vs 30 Yr Fixed</b</p

ChartManager.loadChart(‘purchaseappschart’, ‘PurchaseMtgAppChart’);


Refinance Index vs 30 Yr Fixed</p

ChartManager.loadChart(‘refiappschart’, ‘RefiMtgAppChart’);


All mortgage rates tracked by the MBA’s weekly survey set new benchmark lows duringrnthe week and the effective rates for each also declined.  The average contract rate for 30-year fixedrnrate mortgages (FRMs) with conforming loan balances under $417,500 decreased torn3.79 percent from 3.86 percent with points decreasing to 0.35 from 0.41.  The jumbo equivalent (balances over $417,500)rndecreased to 4.05 percent with 0.34 point from 4.08 percent with 0.38 point. </p

The average raternfor FHA-backed 30-year FRM decreased to 3.63 percent from 3.69 percent thernprevious week with points dropping to 0.36 from 0.50. </p

The raternfor 15-year FRM fell 5 basis points to 3.15 percent and there was a 4 basisrnpoint reduction in average points to 0.43 point. </p

The average contract interest rate for 5/1 adjustable raternmortgages (ARMs), at 2.76 percent with 0.45 point during the week ended June 29,rnended the most recent week at 2.71 percent with 0.36 point.  The ARM share ofrnapplication activity remained around 4 percent of total applications.</p

MBA datarnis collected for loans with an 80 percent loan-to-value ratio.  Points include the applications fee.</p

The average size ofrnall loans for home purchase in the US was $240,897 in June, down from $243,733rnin May 2012. The average refinance loan was for $218,619, down from $226,576 inrnMay.  The largest purchase loans were made in the Pacific region at $rn361,788 as were the largest refinance loans at $ 310,977. </p

MBA’s WeeklyrnApplication Survey covers over 75 percent of all U.S. retail residentialrnmortgage applications, and has been conducted weekly since 1990. rnRespondents include mortgage bankers, commercial banks and thrifts.  Basernperiod and value for all indexes is March 16, 1990=100.

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of is prohibited.

About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

See all blogs


Leave a Comment

Leave a Reply

Latest Articles

Real Estate Investors Skip Paying Loans While Raising Billions

By John Gittelsohn August 24, 2020, 4:00 AM PDT Some of the largest real estate investors are walking away from Read More...

Late-Stage Delinquencies are Surging

Aug 21 2020, 11:59AM Like the report from Black Knight earlier today, the second quarter National Delinquency Survey from the Read More...

Published by the Federal Reserve Bank of San Francisco

It was recently published by the Federal Reserve Bank of San Francisco, which is about as official as you can Read More...