Posted by OR on 6/13/12 10:13am
Msg #423395

Rate Alert Mortgage applications

Mortgage applications increased 18.0% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) the week ending June 8, 2012. The week’s results included an adjustment for the Memorial Day holiday. The Refinance Index increased over 19% from the previous week to the highest index level since April 2009. The seasonally adjusted Purchase Index increased around 13% from one week earlier. The refinance share of mortgage activity increased to 79% of total applications from 78% the previous week. The adjustable-rate mortgage (ARM) share of activity remains around 5 percent of total applications from the previous week. The average loan size of all loans for home purchase in the US was $243,733 in May 2012, up from $238,135 in April 2012. The average loan size for a refinance was $226,576, up from $219,664 in April. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.88% from 3.87%, with points decreasing to 0.43 from 0.46 (including the origination fee) for 80% loans. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) decreased to 4.12% from 4.13%, with points increasing to 0.41 from 0.35 (including the origination fee) for 80% loans. The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.71% from 3.70%, with points decreasing to 0.59 from 0.60 (including the origination fee) for 80% loans. The average contract interest rate for 15-year fixed-rate mortgages increased to 3.23% from 3.20%, with points increasing to 0.48 from 0.46 (including the origination fee) for 80% loans.