Press Release - Weekly Application Survey


Title: Mortgage Applications Increase in Latest MBA Weekly Survey
Source:   MBA
Date: 9/12/2012

WASHINGTON, D.C. (September 12, 2012) — Mortgage applications increased 11.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 7, 2012.  This week’s results include the customary upward adjustment for the Labor Day holiday. 

The Market Composite Index, a measure of mortgage loan application volume, increased 11.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 12 percent compared with the previous week.  The adjusted Refinance Index increased 12 percent from the previous week.  The seasonally adjusted Purchase Index increased 8 percent from one week earlier. The unadjusted Purchase Index decreased more than 15 percent compared with the previous week and was 7 percent higher than the same week one year ago.

The holiday adjusted numbers may overstate the level of refinance applications because some lenders who rely primarily on the internet/consumer direct channel for originations saw little if any decline in applications for Labor Day as compared with the drops for lenders relying on retail offices, perhaps because borrowers had additional time over the Labor Day weekend to complete online refinance applications.

The refinance share of mortgage activity increased to 80 percent of total applications from 79 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 4.5 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 3.75 percent from 3.78 percent, with points increasing to 0.44 from  0.37 (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 4.00 percent from 4.05 percent, with points decreasing to 0.30 from 0.32 (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 decreased to 3.50 percent from 3.54 percent, with points decreasing to 0.43 from 0.44 (including the origination fee) for 80 percent LTV loans.  This 30-year FHA contract rate marks a new low for the survey. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.07 percent from 3.10 percent, with points increasing to 0.38 from 0.37 (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 decreased to 2.63 percent from 2.64 percent, with points increasing to 0.47 from 0.35 (including the origination fee) for 80 percent LTV loans. This 5/1 ARM contract rate is the lowest recorded in the survey. 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.

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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.