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Mortgage Applications Uptick in U.S.

Residential News » Residential Real Estate Edition | By David Barley | October 26, 2011 8:43 AM ET



According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 21, mortgage applications increased 4.9 percent from one week earlier, which included the Columbus Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, increased 4.9 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 4.8 percent compared with the previous week. The Refinance Index increased 4.4 percent from the previous week. The seasonally adjusted Purchase Index increased 6.4 percent from one week earlier. The unadjusted Purchase Index increased 6.1 percent compared with the previous week and was 2.7 percent lower than the same week one year ago.

The four week moving average for the seasonally adjusted Market Index is down 3.61 percent. The four week moving average is down 0.71 percent for the seasonally adjusted Purchase Index, while this average is down 4.41 percent for the Refinance Index.

The refinance share of mortgage activity decreased to 77.3 percent of total applications from 77.6 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.9 percent from 5.8 percent of total applications from the previous week.

During the month of September, the investor share of applications for home purchase was at 6.0 percent, a slight increase from 5.7 percent in August. This change was led by an increase in the Mountain region. In addition, the share of purchase mortgages for second homes decreased to 5.8 percent in September from 6.0 percent in August.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained unchanged at 4.33 percent, with points decreasing to 0.47 from  0.48 (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 with jumbo loan balances (greater than $417,500)increased to 4.68 percent from 4.64 percent, with points decreasing to 0.42 from 0.45 (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 backed by the FHA  decreased to 4.11 percent from 4.12 percent, with points increasing to 0.61 from 0.53 (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 increased to 3.62 percent from 3.61 percent, with points increasing to 0.45 from 0.43 (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 increased to 3.11 percent from 3.08 percent, with points increasing to 0.50 from 0.48 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate also increased from last week.

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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