MBA: Applications For Refinances Fell 7% As Rates Edged Up

Posted by Patrick Barnard on September 24, 2014 No Comments
Categories : Residential Mortgage

After falling dramatically the week of Labor Day, then bouncing back impressively the following week, mortgage application volume fell again during the week ending Sept. 19, driven mainly by a drop in applications for refinances, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

Applications for refinances dropped 7% from the previous week, while applications for purchases decreased 0.3%.

Overall, volume decreased 4.1% on an adjusted basis and 5% on an unadjusted basis.

On an unadjusted basis, purchase application volume dropped 2% compared with the previous week and was 16% lower compared to the same week one year ago.

The refinance share of mortgage activity decreased to 56% of total applications from 57% the previous week.

The decrease in applications for refinances coincided with an increase in mortgage interest rates. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.39%, up from 4.36% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.30%, up from 4.24% the previous week.

The average rate for a 30-year FRM backed by the Federal Housing Administration was 4.08%, up from 4.03% the week prior.

The average rate for a 15-year FRM remained unchanged at 3.56%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.20%, up slightly from 3.19% the previous week.

The ARM share of activity increased to 8% of total applications.

All rates are based on closings.

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