MBA: Mortgage Application Volume Continues To Fall

Posted by Patrick Barnard on November 13, 2013 No Comments
Categories : Residential Mortgage

Mortgage application volume decreased 1.8% for the week ending Nov. 8, compared to the previous week, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The MBA revised down the application volume figure provided in the previous week's report. Although it had initially reported that application volume was down 7%, for the week ending Nov. 1, that figure has since been revised to 2.8%.

On an unadjusted basis, application volume for the week ending Nov. 8 decreased 3% compared with the previous week.

Applications for refinancing also continued to decline, dropping about 2% compared to the previous week. The refinance share of mortgage activity remained unchanged at 66% of all volume.

The Purchase Index, which measures application volume waiting in the pipeline, decreased 1% from one week earlier, on an adjusted basis, and decreased 3% on an unadjusted basis. The unadjusted Purchase Index was 6% lower than the same week one year ago, the MBA reports.

Application volume continues to drop for one main reason: rising interest rates.

According to the MBA, the average interest rate for a 30-year fixed-rate mortgage with conforming loan balance ($417,000 or less) increased to 4.44% – the highest level in a month – from 4.32% the week prior.

The average interest rate for a 30-year fixed-rate mortgage with jumbo loan balance (greater than $417,000) increased to 4.48% – also the highest level in a month – up from 4.37% the week prior.

The average interest rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration increased to 4.16% from 4.07%.

The average interest rate for 15-year fixed-rate mortgage increased to 3.52% – the highest level in a month – from 3.44%.

The average interest rate for a 5/1 adjustable-rate mortgage (ARM) increased to 3.11% from 3.08%.

The ARM share of activity increased to 7% of total applications.

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MBA: Mortgage Application Volume Continues To Fall

Posted by Patrick Barnard on July 31, 2013 No Comments
Categories : Residential Mortgage

Mortgage application volume continued to decrease last week, dropping 3.7% compared to the week prior, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

The drop comes despite the fact that mortgage interest rates dipped slightly for a second week in a row. Rising interest rates have been attributed to the decline in application volume – however, the recent dip in rates has apparently not been enough to coax potential buyers off the fence. For the week ending July 26, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.64%, down 0.02 percentage points from 4.66% the week prior.

"Mortgage rates were little changed last week, but remain roughly one percentage point higher than they were three months ago," says Mike Fratantoni, vice president of research and economics for the MBA. "Refinance application volume continues to decline, with the refinance index now more than 55 percent lower than its recent peak, reaching the lowest level in over two years. Applications for home purchases dropped for the fourth time in five weeks, but purchase volume is running about 5 percent higher than last year at this time."

On an unadjusted basis, mortgage application volume decreased 4% compared with the previous week.

Refinancing volume also continued to plummet, decreasing 4% from the previous week – however, the refinance share of mortgage activity was unchanged at 63% of total applications.

The adjustable-rate mortgage share of activity decreased to 6% of total applications. The Home Affordable Refinance Program (HARP) share of refinance applications increased to 37% from 34% the week prior.

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