|Title: ||Mortgage Applications Increase in Latest MBA Weekly Survey|
WASHINGTON, D.C. (August 20, 2014) — Mortgage applications increased 1.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending
August 15, 2014.
The Market Composite Index, a measure of mortgage loan application volume, increased 1.4 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index increased 1 percent compared with the previous week. The
Refinance Index increased 3 percent from the previous week. The seasonally adjusted Purchase Index decreased 0.4 percent
from one week earlier. The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 11 percent
lower than the same week one year ago.
“Interest rates dropped last week as a result of the ongoing turmoil in Ukraine and other international concerns, which in
turn pushed mortgage rates lower,” said Mike Fratantoni, MBA’s Chief Economist. “Overall application volume for conventional
mortgages increased. However, there was a 5.9 percent decline in the number of applications for government mortgages, with
both purchase and refinance applications declining. Within the government sector, this decline was led by an 8 percent decline
in unadjusted Department of Veterans Affairs applications, while Federal Housing Administration and Rural Housing Service
unadjusted applications also fell by 5 percent and 3 percent respectively.”
The refinance share of mortgage activity increased to 55 percent of total applications from 54 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased to 7.8 percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased
to 4.29 percent from 4.35 percent, with points increasing to 0.26 from 0.22 (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 $417,000) decreased
to 4.18 percent from 4.24 percent, with points increasing to 0.23 from 0.19 (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 3.99 percent from 4.04
percent, while points remained unchanged at 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 decreased to 3.44 percent from 3.48 percent, while points
remained unchanged at 0.30 (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 3.10 percent from 3.24 percent, with points decreasing to 0.44
from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate decreased 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.