Mortgage rates drop as applications fall

by MPA18 Mar 2015
Mortgage applications decreased 3.9% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending March 13, 2015.  Meanwhile, mortgage rates decreased on all five types of loans last week, a full-reversal of the prior week’s increases in interest rates.

The Market Composite Index, a measure of mortgage loan application volume, decreased 3.9% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 4% compared with the previous week.  The Refinance Index decreased 5% from the previous week.  

The seasonally adjusted Purchase Index decreased 2% from one week earlier. The unadjusted Purchase Index decreased 1% compared with the previous week and was 1% higher than the same week one year ago.

The refinance share of mortgage activity decreased to 59% of total applications, the lowest level since October 2014, from 60% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.5% of total applications.

The FHA share of total applications increased to 14.3% this week from 14% last week. The VA share of total applications decreased to 10.3% this week from 10.8% last week. The USDA share of total applications increased to 0.9% this week from 0.8% last week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99%  from 4.01%, with points increasing to 0.4 from  0.39 (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 3.94% from 4.02%, with points increasing to 0.33 from 0.27 (including the origination fee) for 80% 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 3.74% from 3.8%, with points decreasing to 0.12 from 0.20 (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 3.28% from 3.29%, with points increasing to 0.34 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.99% from 3.18%, with points increasing to 0.43 from 0.40 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week. 

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