Applications Down Again in MBA Weekly Survey

Mortgage applications fell for the third straight week, albeit slightly as purchased applications picked up, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending November 16.

This week’s results do not include an adjustment for the Veterans’ Day holiday.

The Market Composite Index decreased by 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 3 percent compared to the previous week.

The (unadjusted) Refinance Index decreased by 5 percent from the previous week to its lowest level since December 2000. The refinance share of mortgage activity decreased to 38.5 percent of total applications from 39.4 percent the previous week.

The seasonally adjusted Purchase Index increased by 3 percent from one week earlier. The unadjusted Purchase Index decreased by 1 percent compared to the previous week and was 5 percent lower than the same week one year ago.

The FHA share of total applications increased to 10.7 percent from 10.6 percent the week prior. The VA share of total applications increased to 10.6 percent from 10.1 percent the week prior. The USDA share of total applications remained unchanged at 0.7 percent from the week prior.

“Treasury rates declined last week, as equity markets continued to see large swings amidst investor concerns over global economic growth,” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “As a result, mortgage rates inched back across most loan types, including the 15-year fixed-rate mortgage, 5/1 ARM, and 30-year jumbo mortgage rate. The 30-year fixed-rate mortgage also declined, stopping a run of six straight weekly increases.”

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) decreased to 5.16 percent from 5.17 percent, with points decreasing to 0.48 from 0.55 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.88 percent from 4.98 percent, with points increasing to 0.29 from 0.28 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA remained unchanged at 5.08 percent, with points increasing to 0.63 from 0.55 (including 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 decreased to 4.53 percent from 4.57 percent, with points decreasing to 0.51 from 0.56 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 4.24 percent from 4.45 percent, with points increasing to 0.51 from 0.31 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity decreased to 7.3 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.