MBA: Refinance Applications Decline as Rates Increase

The latest Weekly Mortgage Application Survey of the Mortgage Bankers Association -- with data for the week ending August 17, 2012 -- was released August 22.

Application Volume

Changes between the weeks ending August 10 and August 17:

• The Market Composite Index decreased 7.4% on a seasonally adjusted basis from one week earlier.  On an unadjusted basis, the Index decreased 8% compared with the previous week.
  
  
• The Refinance Index decreased 9% from the previous week to the lowest level since early July.
  
  
• The seasonally adjusted Purchase Index increased 0.9% from one week earlier. The unadjusted Purchase Index decreased 0.9% compared with the previous week and was 3.0% higher than the same week one year ago.

Interest Rates

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.86%.

The average rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.11% from 4.03%.

The average rate for 30-year fixed-rate FHA mortgages increased to 3.62% from 3.53%.

The average contract interest rate for 15-year fixed-rate mortgages increased to 3.15% from 3.12%.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field.

For additional information, visit MBA's web site: www.mortgagebankers.org.