| Title: | Mortgage Applications Increase in Latest MBA Weekly Survey |
| Source: | MBA |
| Date: | 1/18/2012 |
WASHINGTON, D.C. (January 18, 2012) — Mortgage applications increased 23.1 percent from one week earlier (last week’s results included an adjustment for New
Years Day), according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week
ending January 13, 2012.
The Market Composite Index, a measure of mortgage loan application volume, increased 23.1 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index increased 38.1 percent compared with the previous week. The
Refinance Index increased 26.4 percent from the previous week to its highest level since August 8, 2011. The seasonally adjusted
Purchase Index increased 10.3 percent from one week earlier to its highest level since December 12, 2011. The unadjusted Purchase
Index increased 28.4 percent compared with the previous week and was 2.2 percent higher than the same week one year ago.
The four week moving average for the seasonally adjusted Market Index is up 5.99 percent. The four week moving average is
up 1.96 percent for the seasonally adjusted Purchase Index, while this average is up 7.00 percent for the Refinance Index.
The refinance share of mortgage activity increased to 82.2 percent of total applications from 80.8 percent the previous week.
This is the highest refinance share since October 22, 2010. The adjustable-rate mortgage (ARM) share of activity increased
to 5.6 percent from 5.4 percent of total applications from the previous week.
“Interest rates dropped last week due to continuing anxieties regarding the fragile economic situation in Europe,” said Michael
Fratantoni, MBA’s Vice President of Research and Economics. Fratantoni continued, “With mortgage rates reaching new lows,
refinance volume jumped and MBA’s refinance index reached its highest level in the last six months. Purchase activity also
increased as buyers returned to the market after the holiday season.”
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased
to 4.06 percent from 4.11 percent, with points increasing to 0.48 from 0.41 (including the origination fee) for 80 percent
loan-to-value (LTV) ratio loans. This is the lowest 30-year fixed rate in the history of the Survey. The effective rate also
decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased
to 4.40 percent from 4.34 percent, with points decreasing to 0.37 from 0.47 (including the origination fee) for 80 percent
loan-to-value (LTV) ratio loans. The effective rate also increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.91 percent from 3.96
percent, with points decreasing to 0.59 from 0.72 (including the origination fee) for 80 percent loan-to-value (LTV) ratio
loans. This is the lowest 30-year FHA rate in the history of the Survey. The effective rate also decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.33 percent from 3.40 percent, with points
increasing to 0.39 from 0.37 (including the origination fee) for 80 percent LTV loans. This is the lowest 15-year fixed rate
in the history of the Survey. The effective rate also decreased from last week.
The average contract interest rate for 5/1 ARMs remained unchanged 2.90 percent, with points decreasing to 0.45 from 0.49
(including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. This is the lowest 5/1 ARM rate since MBA
started tracking the series in January 2011. The effective rate also decreased from last week.
If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mortgagebankers.org/WeeklyApps, contact mbaresearch@mortgagebankers.org or click here.
The survey covers over 75 percent of all U.S. retail residential mortgage applications, and has been conducted weekly since
1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March
16, 1990=100.
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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry
that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the
association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand
homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and
fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety
of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies,
mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending
field. For additional information, visit MBA's Web site: www.mortgagebankers.org.