Mortgage apps up, rates down

by MPA06 Feb 2014
Mortgage applications were up slightly last week as mortgage rates fell, according to data released Wednesday.

The Mortgage Bankers Association’s Market Composite Index – which measures loan application volume – was up 0.4% on a seasonally adjusted basis last week. On an unadjusted basis, the index increased 14% from the week prior. The Refinance Index was up 3% from the previous week. The Purchase Index, meanwhile, decreased 4% on a seasonally adjusted basis from the previous week. On an unadjusted basis, the Purchase Index increased 14% last week from the week prior, and was 17% lower than the same week a year ago.

The refinance share of mortgage activity remained steady at 62% of total applications. The adjustable-rate mortgage share increased to 8% of total mortgage activity.

Average interest rates for mortgages decreased across the board, according to MBA. Interest rates were at their lowest levels since November, except for rates on the 5/1 ARM, which hit their lowest rate since December.

The average rate for 30-year fixed rate mortgages with conforming loan balances dropped to 4.47% last week from the previous week’s 4.52%. The average rate for 30-ear FRMs with jumbo loan balances dropped to 4.42% from the previous week’s 4.47%.

The average rate for Federal Housing Administration-backed 30-year FRMs dropped from 4.18% to 4.12% last week. The rate for 15-year FRMs, meanwhile, dropped to 3.53% last week from the prior week’s 3.59%.

The average rate for 5/1ARMS dropped to 3.15% last week from the previous week’s average of 3.25%.


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