April 6, 2011 (Chris Moore)
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 1, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 2.0 percent on a seasonally adjusted basis from last week.
On an unadjusted basis, the Index decreased 1.5 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 1.9 percent.
The seasonally adjusted Purchase Index increased 6.7 percent from one week earlier. The four week moving average is up 0.9 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index increased 7.0 percent compared with the previous week and was 16.8 percent lower than the same week one year ago.
The Government Purchase Index increased 10.3 percent to its highest level since May 7, 2010, on a seasonally adjusted basis.
The Refinance Index decreased 6.2 percent from the previous week. The four week moving average is down 3.2 percent.
“Purchase application volume increased last week reaching the highest level of the year, but remains relatively low by historical standards, at levels last seen in 1997,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “The increase last week was due to a sharp increase in applications for government loans. Borrowers were likely motivated to apply before a scheduled increase in FHA insurance premiums that became effective last Friday.” Fratantoni continued, “Rates were flat last week, but refinance activity fell, as the pool of borrowers who have both the incentive and the ability to qualify for a refinance continues to shrink.”
The refinance share of mortgage activity decreased to 61.2 percent of total applications from 64.3 last week. This is the lowest refinance share seen since the beginning of May, 2010.
The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent from 5.7 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 4.93 percent from 4.92 percent last week, with points decreasing to 0.70 from 0.83 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.14 from 4.16 percent last week, with points increasing to 1.09 from 0.99 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Mortgage Bankers Association