Press Release - Weekly Application Survey


Title: Mortgage Applications Decrease in Latest MBA Weekly Survey
Source:   MBA
Date: 12/24/2013

WASHINGTON, D.C. (December 24, 2013) — Mortgage applications decreased 6.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 20, 2013. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 6.3 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 7 percent compared with the previous week.  The Refinance Index decreased 8 percent from the previous week.  The seasonally adjusted Purchase Index decreased 4 percent from one week earlier. The unadjusted Purchase Index decreased 5 percent compared with the previous week and was 11 percent lower than the same week one year ago.

“Following the Federal Reserve’s taper announcement, mortgage application volume dropped again last week, with rates increasing and refinance application volume falling to its lowest level since November 2008,” said Mike Fratantoni, MBA’s Vice President of Research and Economics. “Purchase application volume was weak too, continuing to run more than ten percent below last year’s pace. Notably, government purchase application volume is almost 25 percent below where it was at this time last year, with the larger drop compared to conventional purchase likely due to the increase in FHA premiums over the course of the year.” 

The refinance share of mortgage activity decreased to 65 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 8.3 percent of total applications, the highest level since July 2008.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.64 percent, the highest level since September 2013,  from 4.62 percent, with points increasing to 0.41 from  0.38 (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 $417,000) increased to 4.63 percent, the highest level since September 2013, from 4.61 percent, with points remained unchanged at 0.24 (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 4.29 percent from 4.25 percent, with points decreasing to 0.24 from 0.32 (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 3.74 percent, the highest level since September 2013, from 3.66 percent, with points decreasing to 0.29 from 0.35 (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 3.26 percent, the highest level since September 2013,   from 3.20 percent, with points decreasing to 0.39 from 0.42 (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.mba.org/WeeklyApps, contact mbaresearch@mba.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.

Of Note
The MBA offices will be closed Wednesday, December 25, 2013, through Wednesday, January 1, 2014.  The Weekly Applications Survey results for the week ending December 20, 2013, will be released at 7:00 a.m. on Tuesday, December 24, 2013.  Results for the week ending December 27, 2013, will not be released on January 1, 2013.  Release of the survey will resume on Wednesday, January 8, 2013, at 7:00 a.m. with results for the two weeks prior.

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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.