Mortgage application volume hits 12-year low

by Ryan Smith18 Dec 2013
Mortgage application volume hit a 12-year low last week, according to data released today.

The Mortgage Bankers Association’s Market Composite Index – a measure of mortgage application volume – fell 5.5% last week on a seasonally adjusted basis. On an unadjusted basis, the index fell 6% from the week prior. The seasonally adjusted Purchase Index was also down, falling 6% to its lowest level since December of 2012.

“Mortgage applications fell further last week, with the market index falling to its lowest level in more than a dozen years,” said Mike Fratantoni, MBA’s vice president of research and economics.  “Both purchase and refinance applications fell as interest rates increased going into today's Federal Open Market Committee meeting.”

The refinance share of mortgage activity was up, reaching 66% of total applications last week. The adjustable-rate mortgage share of mortgage activity held steady at 8%.

The average interest rate for 30-year fixed-rate mortgages with conforming loan balances increased from 4.61% to 4.62% -- the highest level since September. The average rate for 30-year FRMs with jumbo loan balances increased from 4.59% to 4.61% -- also its highest level since September.
 

COMMENTS

  • by seriously | 12/18/2013 8:32:13 AM

    It's Christmas.

  • by Michael from Michigan | 12/18/2013 8:56:33 AM

    I agree with seriously it is, in fact, the Christmas Holiday. The majority of the population are concentrating on shopping, parties and travel. The ONLY buyers who are currently in the market are the buyers who MUST find a home immediately. After the holiday break, the vast majority of the buyers will renew their search for a home. Many buyers will finally be getting off the fence of indecision and buy a home, before the interest rates go too much higher. Inventories of available homes remain tight in most markets.

  • by jim in wisconsin | 12/18/2013 9:07:10 AM

    yes it is Christmas but it was Christmas at this time of the yr. for the last 12 yrs ! I think the Fed will understand that any increase to rates, at this time, will slow the economy, because things, with the avg. consumer, (outside of Corp. America) are still not as good as some try to lead us to believe.

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