Mortgage Applications Slow as Average Rates Rise

by devteam February 22nd, 2012 | Share

Mortgagernapplications decreased during the week ended February 17 according to thernWeekly Mortgage Applications Survey released this morning by the MortgagernBankers Association (MBA),   The MarketrnComposite Index measuring the volume of applications decreased 4.5 percent on arnseasonally adjusted basis and 3.6 percent unadjusted from the week endedrnFebruary 10.</p

ThernRefinancing Index declined 4.8 percent while the volume of applications for homernpurchases decreased 2.9 percent on a seasonal adjusted basis.  The unadjusted Purchase Index was 1.4 percentrnlower than the week before and down 9.2 percent from the same week inrn2011.  Applications for refinancingrncomposed 80.1 percent of all applications compared to 81.1 percent the previousrnweek.</p

Thernfour week moving average of the seasonally adjusted Market Composite Indexrnslipped by 0.30 percent, and the moving average for the seasonally adjustedrnPurchase Index was down 3.1 percent.  Thernmoving average of the Refinance Index rose 0.33 percent.  </p

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

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


Refinance Index vs 30 Yr Fixed</p

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


Thernaverage contract interest rate for conforming (balances under $417,500) 30-yearrnfixed-rate mortgages (FRM) increased one basis point to 4.09 percent withrnpoints increasing from 0.51 to 0.53 point. rnThe effective rate also increased from the previous week.  Rates for jumbo 30-year mortgages withrnbalances over $417,500 averaged 4.32 percent with 0.42 point compared to 4.30rnpercent with 0.44 point a week before. The effective rate decreased.  FHA-backed 30-year FRM rates were unchangedrnat 3.87 percent with points dropping from 0.78 to 0.41.  The effective rate decreased.</p

Averagernrates for 15-year FRM increased to 3.38 percent with 0.37 point from 3.33rnpercent with 0.40 point and the effective rate also increased.</p

Rates forrnhybrid 5/1 adjustable rate mortgages (ARMs) increased one basis point to 2.94 percentrnand points increased to 0.44 from 0.42. rnThe effective rate also increased. rnApplications for ARMs as a share of all mortgage applications declinedrnslightly from 5.4 percent to 5.3 percent.</p

The preceding raterninformation is for 80 percent loan-to-value mortgages and points quoted includernthe origination fee.</p

During the monthrnof January 57.2 percent of applications for refinancing were for 30-year FRMrnmortgages, 24.4 percent were for 15 year FRM and 5.5 percent were seeking ARMS.  The percentage of applications in all threerncategories increased from December figures. rnApplications for mortgages with amortization schedules other thanrn30-year or 15-year terms constituted 12.9 percent of refinance applications, lowerrnthan in December.</p

MBA’s weeklyrnsurvey covers over 75 percent of all U.S. retail residential mortgagernapplications, and has been conducted weekly since 1990.  Respondentsrninclude mortgage bankers, commercial banks and thrifts.  Base period andrnvalue 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.

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