With Holidays Over, Mortgage Originations Rise

There was a slight increase in mortgage
applications
during the first week of 2012 according to data released this
morning by the Mortgage Bankers Association (MBA).  The MBA’s seasonally adjusted Market Composite
Index, a measure of loan application volume, rose 4.5 percent during the week
ended January 6, with an adjustment to reflect the holiday shortened week. The
volume was up from the previous week by 34.4 percent on an unadjusted
basis. 

The seasonally adjusted Purchase Index rose
8.1 percent from the week ended December 30, 2011 and, unadjusted, increased
41.9 percent.  The unadjusted volume was
17.9 percent below that of the same week in 2011. The Refinance Index grew 3.3
percent.

The indices’ four week
moving averages were down for the week.  Seasonally
adjusted Market and Purchase Indices fell 0.53 percent and 1.92 percent
respectively and the Refinance Index was down 0.09 percent.      

Refinancing
as a share of overall activity decreased slightly to 80.8 percent from the all
time high of 81.9 percent the previous week. 
The share held by adjustable-rate mortgages (ARM) increased to 5.4
percent of all applications from 4.7 percent at the end of the year.   

Mortgage rates
were mixed.  The average contract
interest rate for conforming (those with loan balances of $417,500 or less) 30-year fixed-rate mortgages (FRM) increased to 4.11 percent with 0.41 point from 4.07 percent with 0.53 point.  The effective rate increased.  The rate for jumbo 30-year FRM (loan balances
over $417,500) decreased to 4.34 percent from 4.41 percent with points rising
to 0.47 from 0.44 point and the effect rate decreased.  Rates for FHA backed 30-year FRM were
unchanged at 3.96 percent although points increased from 0.71 to 0.72.  The effective rate was unchanged.

The
rate for 15-year FRM increased 3 basis points to 3.40 percent with points dropping
to 0.37 from 0.50 and the rate for 5/1
ARMs decreased to 2.90 percent from 2.91 percent, with points increasing to 0.49
from 0.48. 
The effective rate of both products decreased.

All
rates are for 80 percent loan to value originations and all points include the
origination fee.

The
survey covers over 75 percent of all U.S. retail residential mortgage
applications, and has been conducted weekly since 1990.  Respondents
include mortgage bankers, commercial banks and thrifts.  Base period and
value for all indexes is March 16, 1990=100.

…(read more)

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