Applications for mortgages during the week ended September 14 were virtually unchanged from the previous week according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.  The Market Composite Index, a measure of loan application volume, increased 0.2 percent on a seasonally adjusted basis during the week which was shortened by the Labor Day holiday.  On an unadjusted basis it rose 24 percent.

The Refinance Index increased 1 percent from the previous week and represented 81 percent of all applications compared to 80 percent the week before.  Twenty-two percent of applications for refinancing were for Home Affordable Refinance Program (HARP 2.0) loans.  The seasonally adjusted Purchase Index was down 4 percent from a week earlier and the unadjusted Purchase Index increased 18 percent week-over-week and was 8 percent higher than during the same week in 2011.

Purchase Index vs 30 Yr Fixed

Refinance Index vs 30 Yr Fixed

The contract interest rate for conforming 30-year fixed rate mortgages (FRM) was at the lowest level in the history of MBA's survey.  For loans with balances of $417,500 or less the rate was 3.72 percent with 0.45 point compared to 3.75 percent with 0.44 point the week before.  The effective rate decreased from the previous week. The average contract interest rate for the 30-year FRM with jumbo balances increased by one basis point to 4.00 percent, points increased from 0.30 to 0.35 and the effective rate increased.

FHA-backed 30-year FRM rates remained unchanged at 3.50 percent, the lowest rate in survey history, but points increased from 0.43 to 0.57 increasing the effective rate compared to the previous week. 

The average contract rate for 15-year FRM was also at a new low, 3.03 percent with 0.39 point, and the effective rate decreased.  The previous week the rate was 3.07 percent with 0.38 point.

Five percent of total applications during the week were for adjustable rate mortgages (ARMs) an increase from the week before.  The average rate for 5/1 ARMs decreased to 2.61 percent, a survey low, from 2.63 percent and points decreased to 0.32 from 0.47.  The effective rate also decreased.

Interest rates quoted from the survey are for loans with loan-to-value ratios of 80 percent and points include the application fee.  The survey covers 75 percent of all U.S. retail mortgage applications and has been conducted since 1990.  Respondents include mortgage bankers, commercial banks, and thrifts.   The base period and value for the resulting indices is March 16, 1990=100.