Press Release - Weekly Application Survey

Mortgage applications for the week ending December 28, 2012 decreased 21.6 percent from the week ending December 14, 2012 (two weeks prior), according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. The results include an adjustment to account for the Christmas holiday last Tuesday.  

The Refinance Index decreased 23.3 percent compared to the week ending December 14, 2012. The refinance index fell for three consecutive weeks, with the week ending December 28, 2012 at the lowest level since April 2012.  The seasonally adjusted Purchase Index decreased 14.8 percent compared with levels reported two weeks ago.

The refinance share of mortgage activity remained the same at 82 percent of total applications for the two weeks.

For the week ending 12/28/12, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.52 percent from 3.51 percent, with points increasing to 0.48 from  0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from the previous week.

For the week ending 12/28/12, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 3.75 percent from 3.77 percent, with points decreasing to 0.30 from 0.32 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from the previous week.

For the week ending 12/28/12, the average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.34 percent from 3.35 percent, with points increasing to 0.61 from 0.58 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from the previous week.

For the week ending 12/28/12, the average contract interest rate for 15-year fixed-rate mortgages increased to 2.86 percent from 2.84 percent, with points increasing to 0.27 from 0.21 (including the origination fee) for 80 percent LTV loans. The effective rate increased from the previous week.

For the week ending 12/28/12, the average contract interest rate for 5/1 ARMs decreased to 2.65 percent from 2.66 percent, with points increasing to 0.42 from 0.33 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from the previous 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.mortgagebankers.org.