MBA: Refinance Application Volume at Lowest Point Since April

There was a 21.6% decline in mortgage application volume on a seasonally adjusted basis during the last two weeks of 2012 as refinancings during the week of Dec. 28 were at their lowest point since April, according to the Mortgage Bankers Association.

The data include an adjustment for Christmas day. The MBA’s offices were closed for the holiday week which is why it included two weeks’ worth of data in its release.

The Refinance Index decreased 23.3% in the two-week period while the seasonally adjusted Purchase Index decreased 14.8%. The market share of refi apps for the two-week period was 82%.

The first week of the period saw rates increase compared to the week of Dec. 14. For the week ended Dec. 28, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased by a basis point from the week ended Dec. 21 to 3.52%. The average contract interest rate for 30-year FHA-insured loans declined one basis point to 3.34%.

The average contract rate for jumbo 30-year FRMs fell two basis points to 3.75%, while for 15-year FRMs it increased two basis points to 2.86%. The rate for the 5/1 ARM was down one basis point to 2.65%.