The WPJ

Mortgage Applications Dip in U.S.

Residential News » Residential Real Estate Edition | By David Barley | November 16, 2011 9:05 AM ET



Thumbnail image for gold-mortgage-application-home-loan-lending-keyimage.jpg According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending November 11, mortgage applications decreased 10.0 percent from one week earlier. This week's results include an adjustment to account for the Veterans Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 10.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 19.6 percent compared with the previous week. The Refinance Index decreased 12.2 percent from the previous week. The seasonally adjusted Purchase Index decreased 2.3 percent from one week earlier. The unadjusted Purchase Index decreased 14.8 percent compared with the previous week and was 9.5 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is up 1.02 percent. The four week moving average is up 2.53percent for the seasonally adjusted Purchase Index, while this average is up 0.61 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 77.3 percent of total applications from 78.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.1 percent from 5.8 percent of total applications from the previous week.

In October 2011, among refinance borrowers, 50.6 percent of applications were for fixed-rate 30-year loans, 28.8 percent for 15-year fixed loans, and 6.0 percent for ARMs. The 15-year refinance share is at its second highest point since the survey was re-benchmarked in January 2011. For applications for home purchase, 85.5 percent were for fixed-rate 30-year loans, 6.9 percent for 15-year fixed loans, and 5.9 percent for ARMs. This is the lowest ARM share for purchases since January 2011.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 4.23 percent from 4.22 percent, with points increasing to 0.52 from  0.41 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.56 percent from 4.57 percent, with points decreasing to 0.46 from 0.47 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA  increased to 4.03 percent from 4.02 percent, with points increasing to 0.59 from 0.49 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.54 percent, with points increasing to 0.47 from 0.45 (including the origination fee) for 80 percent LTV loans. The effective rate also increased from last week.

The average contract interest rate for 5/1 ARMs remained unchanged at 3.01 percent, with points increasing to 0.49 from 0.47 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.  The effective rate also increased from last week.




Real Estate Listings Showcase