MBA: Mortgage Applications Down over Past Two Weeks
Mortgage applications decreased over the past holidays, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending December 23 and 30.
The results included adjustments to account for the Christmas holiday.
The Market Composite Index decreased by 12 percent on a seasonally adjusted basis from two weeks earlier. On an unadjusted basis, the Index decreased by 48 percent compared to two weeks ago.
The Refinance Index decreased by 22 percent from two weeks ago. The refinance share of mortgage activity increased to 52.2 percent of total applications from 51.8 percent the previous weeks.
The seasonally adjusted Purchase Index decreased by 2 percent from two weeks earlier. The unadjusted Purchase Index decreased by 41 percent compared to two weeks ago and was 1 percent lower than the same week one year ago.
“Mortgage application volume typically drops sharply over the holidays,” said MBA Chief Economist Mike Fratantoni. “However, this year, as mortgage rates continued their upward climb reaching the highest levels in more than two years, overall application volume fell even more than the holiday slowdown would suggest, dropping 12 percent over the two-week period on a seasonally adjusted basis.”
MBA reported the FHA share of total applications increased to 11.6 percent from 10.7 percent the week prior. The VA share of total applications decreased to 12.3 percent from 12.4 percent the week prior. The USDA share of total applications increased to 1.1 percent from 1.0 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.39 percent from 4.45 percent, with points increasing to 0.43 from 0.39 (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 $417,000) decreased to 4.37 percent from 4.41 percent, with points increasing to 0.44 from 0.21 (including 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 FHA remained unchanged at 4.22 percent, with points decreasing to 0.34 from 0.44 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.64 percent from 3.70 percent, with points increasing to 0.38 from 0.34 (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 3.28 percent from 3.41 percent, with points increasing to 0.42 from 0.29 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity decreased to 5.4 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.
