| Title: | Mortgage Applications Increase in Latest MBA Weekly Survey |
| Source: | MBA |
| Date: | 6/6/2012 |
WASHINGTON, D.C. (June 6, 2012) — Mortgage applications increased 1.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s
(MBA) Weekly Mortgage Applications Survey for the week ending June 1, 2012. This week’s results include an adjustment for
the Memorial Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.3 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index decreased over 9 percent compared with the previous week.
The Refinance Index increased 2 percent from the previous week to its highest level since February 10, 2012. The seasonally
adjusted Purchase Index decreased slightly from one week earlier to its lowest level since April 13, 2012. The unadjusted
Purchase Index decreased 13 percent compared with the previous week and was 3 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 78 percent of total applications from 77 percent the previous week.
This is the highest refinance share since February 24, 2012. The adjustable-rate mortgage (ARM) share of activity remained
at about 5 percent of total applications.
In May 2012, among home purchase applications, 85 percent were for fixed-rate 30-year loans, 7 percent for 15-year fixed loans
and 6 percent for ARMs. The share of purchase applications for “other” fixed-rate mortgages with amortization schedules other
than 15 and 30-year terms was 2 percent of all purchase applications. The number of home purchase applications with a 15-year
fixed term is at its highest level of the year as a share of all home purchase applications, but the number of 15-year fixed
refinance applications is at its second lowest level of the year as a share of all refinance applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased
to 3.87 percent, the lowest rate in the history of the survey, from 3.91 percent, with points remaining unchanged at 0.46
(including the origination fee) for 80 percent loan-to-value ratio (LTV) 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 $417,500) decreased
to 4.13 percent, the lowest rate in the history of the survey, from 4.23 percent, with points decreasing to 0.35 from 0.40
(including the 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 the FHA remained unchanged at 3.70 percent,
the lowest rate in the history of the survey, with points increasing to 0.60 from 0.59 (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 decreased to 3.20 percent, the lowest rate in the history
of the survey, from 3.23 percent, with points increasing to 0.46 from 0.39 (including the origination fee) for 80 percent
LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 2.78 percent from 2.77 percent, with points increasing to 0.40
from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mortgagebankers.org/WeeklyApps, contact mbaresearch@mortgagebankers.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 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.mortgagebankers.org.