Mortgage Applications Decrease in Latest MBA Weekly Survey

WASHINGTON, D.C. (September 24, 2014) — Mortgage applications decreased 4.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending September 19, 2014. 


The Market Composite Index, a measure of mortgage loan application volume, decreased 4.1 percent on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 5 percent compared with the previous week.  The Refinance Index decreased 7 percent from the previous week.  The seasonally adjusted Purchase Index decreased 0.3 percent from one week earlier.  The unadjusted Purchase Index decreased 2 percent compared with the previous week and was 16 percent lower than the same week one year ago.

The refinance share of mortgage activity decreased to 56 percent of total applications from 57 percent the previous week.  The adjustable-rate mortgage (ARM) share of activity increased to 8.0 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.39 percent, the highest rate since May 2014, from 4.36 percent, with points increasing to 0.35 from  0.20 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.  The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.30 percent from 4.24 percent, with points increasing to 0.22 from 0.16 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.08 percent, the highest rate since May 2014, from 4.03 percent, with points increasing to 0.09 from 0.05 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.56 percent, with points increasing to 0.26 from 0.25 (including the origination fee) for 80 percent LTV loans.  The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 ARMs increased to 3.20 percent from 3.19 percent, with points increasing to 0.40 from 0.29 (including the origination fee) for 80 percent LTV loans.  The effective rate increased from last week.

If you would like to purchase a subscription of MBA’s Weekly Applications Survey, please visit www.mba.org/WeeklyApps, contact mbaresearch@mba.org or click here.

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.