view in browser
Mortgage Applications Down in MBA Weekly Survey

Robinson, Matt
Mortgage applications fell by more than 6 percent last week as key interest rates hit their highest rates in five months, the Mortgage Bankers Association reported this morning in its Weekly Applications Survey for the week ending Feb. 8.

The Market Composite Index decreased by 6.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 5 percent compared to the previous week. 

The Refinance Index decreased by 6 percent from the previous week. The refinance share of mortgage activity of total applications was unchanged at 78 percent from the previous week. The Home Affordable Refinance Program share of refinance applications was unchanged from last week at 28 percent.

The seasonally adjusted Purchase Index decreased by 10 percent from one week earlier. The unadjusted Purchase Index decreased by 4 percent compared to the previous week and was 15 percent higher than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.75 percent, the highest rate since September, from 3.73 percent, with points unchanged at 0.43 (including the origination fee) for 80 percent loan-to-value ratio loans. The contract interest rate for 30-year fixed mortgages has increased for eight of the past nine weeks. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 3.98 percent, the highest rate since September, from 3.96 percent, with points decreasing to 0.36 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.53 percent, with points increasing to 0.39 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.01 percent, the highest rate since September, from 3.00 percent, with points decreasing to 0.28 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 5/1 adjustable-rate mortgages decreased to 2.66 percent from 2.72 percent, with points increasing to 0.31 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 4 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.