US mortgage applications down 12.8% in latest week from previous week on seasonally adjusted basis; applications to refinance down 18%, applications to purchase down 4%: MBA
December 4, 2013
– Mortgage applications decreased 12.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 29, 2013. This week’s results include an adjustment for the Thanksgiving holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 12.8 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 40 percent compared with the previous week. The Refinance Index decreased 18 percent from the previous week and is at its lowest level since the week ending September 6, 2013. The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 36 percent compared with the previous week and was 37 percent lower than the same week one year ago.
The refinance share of mortgage activity decreased to 63 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at 8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.51 percent from 4.48 percent, with points increasing to 0.38 from 0.31 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.49 percent from 4.48 percent, with points increasing to 0.24 from 0.15 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.17 percent from 4.16 percent, with points increasing to 0.36 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56 percent from 3.52 percent, with points increasing to 0.32 from 0.31 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.09 percent from 3.18 percent, with points decreasing to 0.28 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact firstname.lastname@example.org or click here.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
The MBA offices will be closed Wednesday, December 25, 2013, through Wednesday, January 1, 2014. The Weekly Applications Survey results for the week ending December 20, 2013, will be released at 7:00 a.m. on Tuesday, December 24, 2013. Results for the week ending December 27, 2013, will not be released on January 1, 2013. Release of the survey will resume on Wednesday, January 8, 2013, at 7:00 a.m. with results for the two weeks prior.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mba.org.