Overall application volume decreased by 11% from the
Refinance application volume was down 16% on an unadjusted basis, and the index was at its lowest point since July 2011.
However, said Mike Fratantoni, MBA’s vice president of research and economics, even though purchase app volume was down 3% on a seasonally adjusted basis from the prior week, affordability remains strong and that is why the decline was not as steep as with refi apps.
On an unadjusted basis, purchase apps were 12% higher for the same week in 2012.
The share of refi apps fell to 64% from 67%, which is the lowest share since May 2011. The portion of refi apps for the Home Affordable Refinance Program increased to 34% from 30%.
HSH.com’s weekly mortgage radar found rates for the 30-year fixed rate mortgage increased five basis points during the week ended Tuesday, to 4.45%.
"The big jump in mortgage rates late last week has settled somewhat," said Keith Gumbinger, vice president of HSH.com. "From the data we gather each day, indications are that rates have started to slide backward a little bit, relative to what we observed last week."
Zillow Mortgage Marketplace’s rate tracker shows that backward movement. The 30-year fixed mortgage rate declined 21 basis points to 4.17% as of Tuesday afternoon. But most of the week it was between 4.35% and 4.43%.
“This coming week, market participants will be focused on Friday’s jobs report as an indicator of whether the economic recovery is strong enough to withstand an earlier-than-expected withdrawal of Fed stimulus,” said Erin Lantz, director of Zillow Mortgage Marketplace.
According to the MBA application survey, the average contract rate for the 30-year conforming FRM (MBA defines this as a loan with a balance of $417,500 or under) for the survey period is 4.58%, an increase of 12 basis points and the highest it has been since July 2011. Federal Housing Administration-insured loans had an average contract rate for the week of 4.27%, up seven basis points from the previous week.
Jumbo 30-year FRMs saw the average contract rate rise 16 basis points to 4.68%. MBA said the rate for the 15-year FRM increased by nine basis points to 3.64%.
The share of adjustable-rate mortgages was 8% of the week’s loan applications, its highest level since July 2008. Part of the reason might be the rates for these loans have remained relatively low. For example the
However, MBA said the average contract rate for the 5/1 ARM was up 27 basis points to 3.33%. But this is lower than any other rate MBA tracks.
