Mortgage Applications Down 10% Last Week, Interest Rates Mixed

by devteam November 16th, 2011 | Share

Mortgage applications volume dropped 10 percent on arnseasonally adjusted basis during the week ended November 11 according tornresults of the Mortgage Bankers Association’s (MBA) Weekly MortgagernApplications Survey.  The non-seasonallyrnadjusted decrease in MBA’s Market Composite Index was 19.6 percent during thernweek which was impacted to some extent by the Veterans Day holiday.</p

The Refinance Index was down 12.2 percent from thernweek ended November 4 and the seasonally adjusted Purchase Index lost 2.3rnpercent.  The unadjusted Purchase Indexrnwas down 14.8 percent from the previous week and 9.5 percent from the same weekrnin 2010.</p

The four-week moving average for all three indicesrnincreased with the Market Index up 1.02 percent, the seasonally adjustedrnPurchase Index up 2.53 percent and the Refinance Index up 0.61 percent. </p

Applications forrnrefinancing represented 77.3 percent of all applications compared to 78.6rnpercent the previous week while the adjustable-rate mortgage (ARM) share increasedrnto 6.1 percent from 5.8 percent.  Duringrnthe week 28.8 percent of applications for refinancing were for fixed ratern15-year loans, the second largest share for those loans since the survey was re-benchmarkedrnat the beginning of the year. rnApplications for 30-year fixed rate mortgages (FRM) made up 50.6 percentrnof applications for refinancing and ARMS 6.0 percent.  Applications for home purchases werernoverwhelmingly (85.5 percent) for 30-year FRM with 6.9 percent seeking 15-year FRMsrnand 5.9 percent ARMS, a low for the year. </p

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

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


Refinance Index vs 30 Yr Fixed</p

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


Interest rates werernmixed.  The rate for a 30-year FRM with arnconforming loan balance – under $417,500 – increased to 4.23 percent with 0.52rnpoint from 4.22 percent with 0.41 point. rnPoints include origination fees. rnThe effective rate of 30-year conforming FRMs increased.  The rate for jumbo 30-year FRM (loans with arnbalance above $417,500) decreased from 4.57 percent to 4.56 percent and pointsrndecreased from 0.47 to 0.46.  The effectivernrate also decreased.</p

Thirty-year FRMSrnbacked by FHA had an average contract interest rate of 4.03 percent, up onernbasis point from the previous week. rnPoints increased (from 0.49 to 0.59) as did the effective rate.</p

Rates for 15-year FRMrnwere unchanged at 3.54 percent with points up from 0.45 to 0.47 and 5/1 ARMrnmortgage rates were also unchanged at 3.01 percent with points increasing fromrn0.47 to 0.49.  The effective rate of bothrnloan types increased.</p

All rates quoted arernfor loans with an 80 percent loan-to-value ratio and are derived from an MBArnsurvey covering 75 percent of U.S. retail mortgage applications.  Respondents include mortgage bankers,rncommercial banks, and thrifts.  The indexrnis based on activity during the week of March 16, 1990.

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.

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