Mortgage apps down as rates rise

by MPA19 Feb 2014
Mortgage applications were down last week as interest rates rose, according to data released today.

The Mortgage Bankers Association’s Market Composite Index, which measures loan application volume, was down 4.1% on a seasonally adjusted basis last week from the week prior. On an unadjusted basis, the index was down 2%. The Refinance Index dropped 3% from the previous week, and the seasonally adjusted purchase index was down 6%, hitting its lowest level since September of 2011. The unadjusted Purchase Index dropped 2% from the week prior, and was 17% lower than the same week a year ago.

The refinance share of mortgage activity dropped to 61% of all applications, its lowest level since September 2013. The adjustable-rate mortgage share was up, rising to 8% of all applications, according to the MBA.

The average rate for 30-year fixed-rate mortgages with conforming loan balances rose to 4.50% from the previous week’s 4.45%. The average rate for 30-year FRMs with jumbo loan balances rose to 4.45% from the previous week’s 4.40%.

The average rate for Federal Housing Administration-backed 30-year FRMs was also up, increasing to 4.16% from the prior week’s 4.13%. the average rate for 15-year FRMs increased to 3.55% from 3.49% the week prior.

Rates for adjustable-rate mortgages were also up, as the average rate for the 5/1 ARM spiked to 3.20% from last week’s 3.11%.



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