Press Release - Weekly Application Survey


Title: Mortgage Applications Decrease in Latest MBA Weekly Survey
Source:   MBA
Date: 4/11/2012

WASHINGTON, D.C. (April 11, 2012)Mortgage applications decreased 2.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending April 6, 2012. 

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.4 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 2.1 percent compared with the previous week.  The Refinance Index decreased 3.1 percent from the previous week.  The seasonally adjusted Purchase Index decreased 0.5 percent from one week earlier. The unadjusted Purchase Index increased 0.1 percent compared with the previous week and was 5.5 percent higher than the same week one year ago.  There was no adjustment made for Good Friday.

The four week moving average for the seasonally adjusted Market Index is down 2.08 percent.  The four week moving average is up 2.19 percent for the seasonally adjusted Purchase Index, while this average is down 3.45 percent for the Refinance Index.

The refinance share of mortgage activity decreased for the eighth consecutive week to 70.5 percent of total applications from 71.2 percent the previous week.  This is the lowest refinance share since July 29, 2011.  The adjustable-rate mortgage (ARM) share of activity remained unchanged at 5.5 percent of total applications from the previous week.

In March 2012, the share of applications for investment properties increased to 8.3 percent from 7.4 percent in February 2012.  However, the increase in investor share was driven by refinance applications for investment properties (which increased to 9.2 percent in March 2012 from 7.7 percent in February 2012), as the share of purchase applications for investment homes decreased over the month, from 6.1 percent in February 2012 to 5.7 percent in March 2012.  The investor share of purchase applications also decreased on a year over year basis, falling from 5.8 percent in March 2011 to its current level of 5.7 percent in March 2012.  While MBA tracks applications for second homes and investment properties separately, giving them the ability to distinguish between the two, the combined share of investment and second home applications for home purchase had the same directional components for the month of March 2012 – up on the whole and up for refinance applications last month, but down for home purchase activity.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased to 4.10 percent from 4.16 percent, with points remaining unchanged at 0.43 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  This is the lowest 30-year fixed rate since March 9, 2012.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.43 percent from 4.46 percent, with points decreasing to 0.36 from 0.49 (including the origination fee) for 80 percent LTV loans.  This is the lowest 30-year jumbo rate since March 9, 2012.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.87 percent from 3.89 percent, with points decreasing to 0.55 from 0.58 (including the origination fee) for 80 percent LTV loans.  This is the lowest FHA rate since March 9, 2012.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.37 percent from 3.40 percent, with points decreasing to 0.37 from 0.41 (including the origination fee) for 80 percent LTV loans.  This is the lowest 15-year fixed rate since March 9, 2012. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 2.89 percent from 2.93 percent, with points increasing to 0.38 from 0.35 (including the origination fee) for 80 percent LTV loans.  This is the lowest 5/1 ARM rate since March 9, 2012.  The effective rate 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.

###

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.mba.org.