Mortgage Applications Rise 7.0 Percent in One Week

This has been the best week so far this year for mortgage applications, as they rise seven percent in one week, even on an unadjusted basis.

Mortgage applications up 7.0 percent

According to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending May 3, 2013, mortgage applications rose 7.0 percent on a seasonally adjusted basis and on an unadjusted basis, compared to the week prior.

The Refinance Index rose 8.0 percent during this period, hitting its highest level since December 2012, which the MBA says was “due to increases in both the conventional and government refinance indices of 8.8 percent and 5.7 percent respectively.”

The seasonally adjusted Purchase Index increased two percent from one week earlier to the highest level since May 2010, while the unadjusted Purchase Index increased three percent compared with the previous week and was 12.0 percent higher than the same week one year ago.

The refinance share of mortgage activity increased to 76 percent of total applications from 75 percent the previous week, still substantially lower than the average of roughly 80 percent where the activity hovered nearly all of last year.

Average contract interest rates

According to the MBA:

  1. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.59 percent, the lowest rate since December 2012, from 3.60 percent, with points increasing to 0.33 from 0.30 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
  2. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.79 percent from 3.80 percent, with points decreasing to 0.20 from 0.29 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  3. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.35 percent from 3.34 percent, with points increasing to 0.57 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
  4. The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.81 percent, the lowest rate in the history of the survey, from 2.84 percent, with points increasing to 0.29 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
  5. The average contract interest rate for 5/1 ARMs decreased to 2.53 percent, the lowest rate in the history of the survey, from 2.55 percent, with points decreasing to 0.15 from 0.22 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

http://agbeat.com/housing-news/mortgage-applications-rise-7-0-percent-in-one-week/

About

Realtor with Greg Garrett Realty, actively licensed in the state of Virginia

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