Fannie Mae offers new suite of HomePath financing

Fannie Mae offers new suite of HomePath financing

Goodbye HomePath Mortgage and HomePath Renovation

CNBC video: Home shortage could be due to real estate agents

Pocket listings drag down inventory?

Happy 4th birthday Dodd-Frank! Everyone hates you

How effective has Dodd-Frank really been?
W S
Lending

Mortgage application decline continues after last week’s free-fall

Purchase index plunges 16% year-over-year

falling stock
/ Print / Reprints /
| Share More
/ Text Size+

A week after a free-fall of 9.2%, mortgage applications continued their decline with a 0.2% decrease from one week earlier, according to data from the Mortgage Bankers Association’s weekly mortgage applications survey for the week ending June 27, 2014.  

The Market Composite Index, a measure of mortgage loan application volume, decreased 0.2% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 1% compared with the previous week. 

The Refinance Index increased 0.1% from the previous week.  The seasonally adjusted Purchase Index decreased 1% from one week earlier. The unadjusted Purchase Index decreased 1% compared with the previous week and was 16% lower than the same week one year ago.

“The mortgage industry has yet to see purchase activity make up for the drop in refinance volume,” said Quicken Loans vice president Bill Banfield. “Lenders who are able to focus on client experience are bucking this trend and gaining market share despite the recent drops in volume overall.”

The refinance share of mortgage activity increased to 53% of total applications from 52% the previous week. The adjustable-rate mortgage share of activity remained unchanged at 8% of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.28% from 4.33%, with points decreasing to 0.14 from  0.18 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.  The effective rate decreased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.26% from 4.28%, with points decreasing to 0.06 from 0.12 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week. 

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.99% from 4.03%, with points increasing to -0.33 from -0.38 (including the origination fee) for 80% LTV loans.  The effective rate decreased from last week. 

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.42% from 3.47%, with points decreasing to 0.16 from 0.19 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.21% from 3.23%, with points increasing to 0.33 from 0.27 (including the origination fee) for 80% LTV loans.  The effective rate remained unchanged from last week. 

Recent Articles by Trey Garrison

Comments powered by Disqus