Mortgage applications for both home purchases and refinancing increased slightly in what was essentially a lackadaisical week that ended April 19. The Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey also showed interest rates relatively unchanged.
MBA's Market Composite Index, a measure of loan application volume, increased 0.2 percent on a seasonally adjusted basis and 1 percent on an unadjusted basis from the previous week. The Refinance Index was up 0.3 percent with refinancing representing the same 75 percent of all mortgage activity as it had during the week ended April 12. Thirty-two percent of refinancing activity was related to the Home Affordable Refinancing Program (HARP), up from 31 percent the week before and the highest share HARP has enjoyed since MBA began tracking it in February of this year.
The seasonally adjusted Purchase Index also increased 0.3 percent from one week earlier to the highest level since May 2010. The unadjusted Purchase Index increased 1 percent compared with the previous week and was 18 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming balances of $417,500 or less, decreased from 3.67 percent with 0.50 point to 3.65 percent with 0.41 point. The effective rate also decreased. The contract rate for the jumbo equivalent, 30-year loans with balances over $417,500, decreased to 3.75 percent from 3.77 percent but points increased to 0.37 from 0.27 and the effective rate increased.
Interest rates for 30-year FRM backed by the FHA were unchanged during the week but points increased from 0.55 to 0.64 and the effective rate also increased
The rate for 15-year fixed-rate mortgages decreased by two basis points to 2.89 percent and points increased to 0.40 from 0.34. The effective rate decreased from the previous week.
The market share of adjustable-rate mortgages (ARMs) decreased from 5 percent to 4 percent for the week. The average contract interest rate for 5/1 ARMs increased to 2.62 percent from 2.57 percent, with points decreasing to 0.21 from 0.29 and the effective rate increased.
Interest rate information is given for loans with an 80 percent loan-to-balance ratio and points include the origination fee.
MBA's weekly survey has been conducted since 1990 among mortgage bankers, commercial banks and thrifts and covers more than 75 percent of all U.S. retail residential mortgage applications. Base period and value for all indexes is March 16, 1990=100.