The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending April 22, 2011. The Market Composite Index, a measure of mortgage loan application volume, decreased 5.6 percent on a seasonally adjusted basis from last week. The MBA attributed the decrease in activity to a 20 percent drop in government purchase applications from the previous week as prospective borrowers rushed to beat the increase in FHA fees.
On an unadjusted basis, the Index decreased 5.6 percent compared with the previous week. The four week moving average for the seasonally adjusted Market Index is down 2.4 percent.
The seasonally adjusted Purchase Index decreased 13.6 percent from one week earlier, driven by a 26.6 percent decrease in government purchase applications from the week before. The four week moving average is down 0.8 percent for the seasonally adjusted Purchase Index. The unadjusted Purchase Index decreased 12.8 percent compared with the previous week and was 28.8 percent lower than the same week one year ago.
"Purchase applications fell last week, driven primarily by a sharp decrease in government purchase applications as new, higher FHA premiums went into effect," said Michael Fratantoni, MBA’s Vice President of Research and Economics. “This decrease reverses a 20 percent increase in government purchase applications over a four week period, which was likely driven by borrowers attempting to beat this deadline.”
The Refinance Index decreased 0.6 percent from the previous week. The four week moving average is down 3.2 percent.
The refinance share of mortgage activity increased to 61.6 percent of total applications from 58.5 percent last week.
The adjustable-rate mortgage (ARM) share of activity remained the same as the previous week, which was 6.5 percent
The average contract interest rate for 30-year fixed-rate mortgages decreased to 4.80 percent from 4.83 percent last week, with points decreasing to 1.01 from 1.06 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.03 from 4.07 percent last week, with points decreasing to 0.96 from 1.02 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
Tags: MBA, home purchase applications, mortgage rates, fixed rate mortgage, adjustable rate mortgage, refinance, interest rate
Sources:
MBA
No comments:
Post a Comment