Home >> News >> Data >> Mortgage Applications Tumble as Refis Lose Strength
Print This Post Print This Post

Mortgage Applications Tumble as Refis Lose Strength

A sharp decline in refinance applications brought overall mortgage application activity down for the week ending December 14, according to the ""Mortgage Bankers Association's"":http://www.mortgagebankers.org/default.htm (MBA) Weekly Mortgage Applications Survey.

[IMAGE]

The survey's Market Composite Index, a measure of application volume, fell 12.3 percent on a seasonally adjusted basis from one week earlier, according to the MBA. The index was down 13 percent on an unadjusted basis.

The overall decline in the index is attributable to a drop-off in refinance applications. The survey's Refinance Index fell a significant 14 percent from the previous week, hitting its lowest level since November 2. After hitting an almost four-year high last week, the refinance share of total mortgage activity also declined, falling to 83 percent (from 84 percent previously).

""Despite the ""Federal Reserve's announcement"":https://themreport.com/articles/fomc-maintains-policy-stance-to-hold-down-rates-2012-12-12 last week that it would purchase an additional $45 billion in Treasury securities per month as part of its continuing quantitative easing effort, rates increased in the second half of the week,"" said Mike Fratantoni, VP of research and economics for the MBA. ""As a result, refinance applications dropped sharply to the lowest level in over a month.""

Purchase activity also hit a wall, falling 5 percent over the week on a seasonally adjusted basis. The unadjusted Purchase Index was down 8 percent compared to the previous week. Year-over-year, the index was up 9 percent.

By the MBA's measure, the average interest rate for a 30-year fixed-rate mortgage was 3.50 percent, up from 3.47 percent in the last survey.

x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.