|Title: ||Mortgage Refinance Applications Highest Since 2009 as Rates Reach Record Lows in Latest MBA Weekly Survey|
WASHINGTON, D.C. (October 3, 2012) — Mortgage applications increased 16.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s
(MBA) Weekly Mortgage Applications Survey for the week ending September 28, 2012.
The Market Composite Index, a measure of mortgage loan application volume, increased 16.6 percent on a seasonally adjusted
basis from one week earlier. On an unadjusted basis, the Index increased 17 percent compared with the previous week. The
Refinance Index increased 20 percent from the previous week. This was the highest Refinance Index recorded in the survey
since April of 2009. The seasonally adjusted Purchase Index increased 4 percent from one week earlier. The unadjusted Purchase
Index also increased 4 percent compared with the previous week and was 11 percent higher than the same week one year ago.
“Refinance application volume jumped to the highest level in more than three years last week as each of the five mortgage
rates in MBA's survey dropped to new record lows in the survey,” said Mike Fratantoni, MBA’s Vice President of Research and
Economics. “Financial markets continue to adjust to QE3, as the ongoing presence of the Federal Reserve as a significant buyer
of mortgage-backed securities applies downward pressure on rates. Although there was a slight decline in the HARP share of
refinance activity, the level of HARP volume remains steady.”
The refinance share of mortgage activity increased to 83 percent of total applications from 81 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity remained at 4 percent of total applications. The HARP share of refinance
applications decreased to 23 percent last week from 26 percent the prior week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) decreased
to 3.53 percent from 3.63 percent, with points decreasing to 0.35 from 0.41 (including the origination fee) for 80 percent
loan-to-value ratio (LTV) loans. 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 3.82 percent from 3.87 percent, with points decreasing to 0.32 from 0.33 (including the origination fee) for 80 percent
LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.37 percent from 3.44
percent, with points decreasing to 0.36 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective
rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.90 percent from 2.98 percent, with points
decreasing to 0.27 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last
The average contract interest rate for 5/1 ARMs decreased to 2.59 percent from 2.61 percent, with points decreasing to 0.34
from 0.41 (including the origination fee) for 80 percent LTV loans. 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 firstname.lastname@example.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
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.