With Holidays Over, Mortgage Originations Rise

by devteam January 11th, 2012 | Share

There was a slight increase in mortgagernapplications during the first week of 2012 according to data released thisrnmorning by the Mortgage Bankers Association (MBA).  The MBA’s seasonally adjusted Market CompositernIndex, a measure of loan application volume, rose 4.5 percent during the weekrnended January 6, with an adjustment to reflect the holiday shortened week. Thernvolume was up from the previous week by 34.4 percent on an unadjustedrnbasis.  </p

The seasonally adjusted Purchase Index rosern8.1 percent from the week ended December 30, 2011 and, unadjusted, increasedrn41.9 percent.  The unadjusted volume wasrn17.9 percent below that of the same week in 2011. The Refinance Index grew 3.3rnpercent.</p

The indices’ four weekrnmoving averages were down for the week.  Seasonallyrnadjusted Market and Purchase Indices fell 0.53 percent and 1.92 percentrnrespectively and the Refinance Index was down 0.09 percent.      </p

Refinancingrnas a share of overall activity decreased slightly to 80.8 percent from the allrntime high of 81.9 percent the previous week. rnThe share held by adjustable-rate mortgages (ARM) increased to 5.4rnpercent of all applications from 4.7 percent at the end of the year.   </p

Mortgage rates</bwere mixed.  The average contractrninterest rate for conforming (those with loan balances of $417,500 or less) 30-year fixed-rate mortgages (FRM) increased to 4.11 percent with 0.41 point from 4.07 percent with 0.53 point.  The effective rate increased.  The rate for jumbo 30-year FRM (loan balancesrnover $417,500) decreased to 4.34 percent from 4.41 percent with points risingrnto 0.47 from 0.44 point and the effect rate decreased.  Rates for FHA backed 30-year FRM werernunchanged at 3.96 percent although points increased from 0.71 to 0.72.  The effective rate was unchanged.</p

Thernrate for 15-year FRM increased 3 basis points to 3.40 percent with points droppingrnto 0.37 from 0.50 and the rate for 5/1rnARMs decreased to 2.90 percent from 2.91 percent, with points increasing to 0.49rnfrom 0.48. rnThe effective rate of both products decreased.rn</p

Allrnrates are for 80 percent loan to value originations and all points include thernorigination fee.</p

Thernsurvey 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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