Press Release - Weekly Application Survey


Title: Mortgage Applications Decrease in Latest MBA Weekly Survey
Source:   MBA
Date: 6/26/2013

WASHINGTON, D.C. (June 26, 2013) — Mortgage applications decreased 3.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending June 21, 2013. 


The Market Composite Index, a measure of mortgage loan application volume, decreased 3.0 percent on a seasonally adjusted basis from one week earlier to the lowest level since November 2011.  On an unadjusted basis, the Index decreased 3 percent compared with the previous week.  The Refinance Index decreased 5 percent from the previous week to the lowest level since November 2011.  The seasonally adjusted Purchase Index increased 2 percent from one week earlier. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 16 percent higher than the same week one year ago.


“Interest rates moved up sharply following the Federal Reserve press conference last Wednesday where it was indicated that the Fed could begin tapering their asset purchases later this year,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Mortgage rates increased by the most in a single week since 2011, and refinance application volume dropped to its lowest level in almost two years.  However, applications for conventional purchase loans picked up by more than 3 percent over the week, and total purchase applications were 16 percent higher than one year ago, indicating that homebuyers are not yet dissuaded by the increase in mortgage rates.  Government purchase applications dropped again, likely a function of the recent increase in FHA mortgage insurance premiums.”


The refinance share of mortgage activity decreased to 67 percent of total applications, the lowest level since July 2011, from 69 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7 percent of total applications. The government share of purchase applications dropped to 28 percent, the lowest level in the history of this series.  The HARP share of refinance applications fell from 31 percent the prior week to 30 percent.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.46 percent, the highest rate since August 2011,  from 4.17 percent, with points decreasing to 0.35 from  0.41 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from last week.


The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.52 percent, the highest rate since March 2012,   from 4.23 percent, with points decreasing to 0.28 from 0.34 (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 increased to 4.20 percent, the highest rate since August 2011, from 3.85 percent, with points increasing to 0.40 from 0.22 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.


The average contract interest rate for 15-year fixed-rate mortgages increased to 3.55 percent, the highest rate since November 2011, from 3.30 percent, with points increasing to 0.43 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.


The average contract interest rate for 5/1 ARMs increased to 3.06 percent, the highest rate since October 2011, from 2.81 percent, with points increasing to 0.39 from 0.35 (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 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.