Mortgage applications were down 1.2 percent on a seasonally adjusted basis during the week ended March 2 but rose 10.2 percent on an unadjusted basis when compared to the previous week. The Mortgage Bankers Association reported the data this morning as compiled from its Weekly Mortgage Applications Survey and adjusted to account for the Presidents Day holiday.
The Refinancing Index decreased 2.0 percent from the week ended February 24 but the Purchase Index was up 2.1 percent seasonally adjusted and 14.7 percent unadjusted. When compared to the same week in 2011 the unadjusted Purchase Index was down 7.8 percent.
All of the four-week moving averages were lower than the previous week. The Market Index lost 1.77 percent, the seasonally adjusted Purchase Index 0.47 percent and the Refinance Index 2.04 percent.
The refinancing share of mortgage activity continued to decrease from the record levels of early 2012. Refinancing represented 77.0 percent of total applications, a 9 basis point decrease from the week before and the lowest since December.
Purchase Index vs 30 Yr Fixed
Refinance Index vs 30 Yr Fixed
The average interest rate for a 30-year fixed-rate mortgage (FRM) decreased to 4.06 percent with 0.50 point from 4.07 percent with 0.51 point for conforming loans (those with a balance of $417,500 or less) and to 4.33 percent from 4.34 percent for jumbo loans with balances over that amount. Points for jumbo loans were unchanged at 0.40. The effective rate for both conforming and jumbo loans decreased from the previous week.
Rates for 30-year FRM backed by the FHA increased to 3.87 percent from 3.86 percent with points dropping to 0.70 from 0.80. The effective rate decreased.
The average contract interest rate for 15-year FRM was unchanged at 3.36 percent with 0.38 point but the effective rate decreased from the previous week.
The rate for 5/1 adjustable rate mortgages (ARMs) was also unchanged at 2.78 percent with points decreasing from 0.38 to 0.35 and the effective rate decreased. ARMs had a 5.4 percent share of applications activity during the week, up from 5.0 percent the week before.
All interest rate data is based on loans with an 80 percent loan-to-value basis and points include the origination fee.
Looking back at data for the month of February, MBA reports that purchase applications filed by investors represented 6.1 percent of the total, down from 6.4 percent in January driven by a decline in the New England region. The share of purchase applications for second homes was also down from 5.9 percent in January to 5.8 percent in February.
The MBA weekly 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.
