|Title: ||Mortgage Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (June 27, 2012) — Mortgage applications decreased 7.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending
June 22, 2012.
The Market Composite Index, a measure of mortgage loan application volume, decreased 7.1 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index also decreased 7.1 percent compared with the previous week.
The Refinance Index decreased 8 percent from the previous week. The seasonally adjusted Purchase Index decreased 1 percent
from one week earlier. The unadjusted Purchase Index decreased more than 2 percent compared with the previous week and was
almost 3 percent lower than the same week one year ago.
“Refinance volume fell last week due largely to a fall-off in refinance applications for government loans, which had more
than doubled the prior week,” said Michael Fratantoni, MBA’s Vice President of Research and Economics. “The large swings
in activity were due to the implementation of FHA’s new premiums on streamline refinances, and borrowers timing their applications
to lower their premiums.”
The refinance share of mortgage activity decreased to 79 percent of total applications from over 80 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity is about 4 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased
to 3.88 percent from 3.87 percent, with points decreasing to 0.40 from 0.49 (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) increased
to 4.12 percent from 4.06 percent, with points decreasing to 0.35 from 0.38 (including the 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 the FHA decreased to 3.71 percent from 3.72
percent, with points decreasing to 0.46 from 0.47 (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 decreased to 3.24 percent from 3.25 percent, with points
decreasing to 0.44 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last
The average contract interest rate for 5/1 ARMs increased to 2.81 percent from 2.75 percent, with points increasing to 0.41
from 0.33 (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 firstname.lastname@example.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
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.mortgagebankers.org.