|Title: ||Mortgage Applications Decrease in Latest MBA Weekly Survey|
WASHINGTON, D.C. (June 18, 2014) — Mortgage applications decreased 9.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending
June 13, 2014.
The Market Composite Index, a measure of mortgage loan application volume, decreased 9.2 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index decreased 10 percent compared with the previous week. The
Refinance Index decreased 13 percent from the previous week. The seasonally adjusted Purchase Index decreased 5 percent from
one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 15 percent lower
than the same week one year ago.
“Interest rates increased relative to the previous week, as incoming economic data continues to suggest a pickup in the pace
of growth,” said Mike Fratantoni, MBA’s Chief Economist. “Although the average rate for the week was up only a few basis points,
the increase was matched by a large drop in refinance volume, and purchase application volume also declined. Some lenders
continue to report that they have pre-approved borrowers who have been unable to find a property given the tight inventory
in certain markets.”
The refinance share of mortgage activity decreased to 52 percent of total applications from 54 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased
to 4.36 percent from 4.34 percent, with points increasing to 0.24 from 0.16 (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 4.32 percent from 4.27 percent, with points decreasing to 0.09 from 0.12 (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 4.07 percent from 4.06
percent, with points decreasing to -0.39 from -0.03 (including the origination fee) for 80 percent LTV loans. The effective
rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.50 percent from 3.43 percent, with points
decreasing to 0.16 from 0.22 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last
The average contract interest rate for 5/1 ARMs increased to 3.20 percent from 3.18 percent, with points decreasing to 0.27
from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact email@example.com 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.mba.org.