|Title: ||Government Refinance Applications More Than Double in Latest MBA Survey|
WASHINGTON, D.C. (June 20, 2012) — Mortgage applications decreased 0.8 percent from one week earlier, according to data from the Mortgage Bankers Association’s
(MBA) Weekly Mortgage Applications Survey for the week ending June 15, 2012.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.8 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index decreased more than 1 percent compared with the previous week.
The Refinance Index increased 1 percent from the previous week. The seasonally adjusted Purchase Index fell 9 percent from
one week earlier. The unadjusted Purchase Index decreased more than 9 percent compared with the previous week and was 2 percent
lower than the same week one year ago.
“Refinance volume increased again last week, but the composition of activity changed markedly. Despite rates remaining near
all-time lows, conventional refinance application volume declined, and the HARP share of refinance activity dropped to 20
percent,” said Michael Fratantoni, MBA's Vice President of Research and Economics. “On the other hand, FHA refinance volume
exploded to an all-time high, more than doubling over the week. New, lower FHA premiums on streamlined refinance loans came
fully into effect, and borrowers seized the opportunity to lower their mortgage rates without increasing their FHA premiums.
Purchase activity fell off last week, but this is likely only a recalibration following the Memorial Day holiday, as the level
of activity remains within the narrow band seen for the past 3 years.”
The refinance share of mortgage activity increased to 81 percent of total applications from 79 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity decreased to 4 percent of total applications.
During the month of May, the investor share of applications for home purchase was at 6 percent, unchanged from the previous
month, even though regions including East South Central and South Atlantic increased by 0.5 percent.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased
to 3.87 percent, matching the lowest rate in the history of the survey, from 3.88 percent, with points increasing to 0.49
from 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased
to 4.06 percent, the lowest rate in the history of the survey, from 4.12 percent, with points decreasing to 0.38 from 0.41
(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 increased to 3.72 percent from 3.71
percent, with points decreasing to 0.47 from 0.59 (including the 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 increased to 3.25 percent from 3.23 percent, with points
decreasing to 0.45 from 0.48 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last
The average contract interest rate for 5/1 ARMs decreased to 2.75 percent, the lowest rate in the history of the survey, from
2.78 percent, with points decreasing to 0.33 from 0.49 (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.mortgagebankers.org/WeeklyApps, contact email@example.com 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
Please note that as a result of MBA offices being closed Wednesday, July 4, 2012, the Weekly Applications Survey results for
the week ending June 29 will be released on Thursday, July 5.
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.