Mortgage applications plummet in final two weeks of 2012
Both home purchase and mortgage refinancing applications plummeted in the final two weeks of 2012, an industry trade group said Thursday.
The Mortgage Bankers Association combined data for the two-week period ending Dec. 28 and reported a 21.6% decline from the week ending Dec. 14.
Adjustments also were made for the Christmas Holiday.
Refinancing applications alone fell 23.3%, or back to April levels, when compared to the week ending Dec. 14.
The purchase index, which measures new home purchase application volumes, declined 14.8% from two weeks earlier, but still represented 82% of all applications filed.
Meanwhile, mortgage rates remained mixed with the 30-year, fixed-rate mortgage with a conforming loan balance increasing slightly to 3.52% from 3.51%. The 30-year, FRM jumbo loan fell back to 3.75% from 3.77% two weeks earlier.
The average contract interest rate for a 30-year, FRM backed by the FHA declined to 3.34% from 3.35%, while the 15-year, FRM grew to 2.86% from 2.84%.
The 5/1 ARM fell to 2.65% from 2.66%.