|Title: ||Mortgage Applications Increase in Latest MBA Weekly Survey|
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
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 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
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.