Mortgage Application Volume hits 12-year Low by Elaine360

Elaine Golden Gealer, Brentwood condos, Brentwood townhomes, Brentwood real estate, Brentwood new construction, Brentwood condominiums, Westwood condos, Westwood townhomes, Westwood real estate, Westwood new construction, Westwood condominiums, Westchester condos, Westchester townhomes, Westchester real estate, Westchester construction, Westchester condominiums, Toluca Lake condos, Toluca Lake townhomes, Toluca Lake real estate, Toluca Lake construction, Toluca Lake condominiums, North Hollywood condos, North Hollywood townhomes, North Hollywood real estate, North Hollywood new construction, North Hollywood condominiums, Sherman Oaks condos, Sherman Oaks townhomes, Sherman Oaks real estate, Sherman Oaks new construction, Sherman Oaks condominiums, Encino condos, Encino townhomes, Encino real estate, Encino new construction, Encino condominiums, Beverly Hills condos, Beverly Hills townhomes, Beverly Hills real estate, Beverly Hills new construction, Beverly Hills condominiums, West Los Angeles condos, West Los Angeles townhomes, West Los Angeles real estate, West Los Angeles new construction, West Los Angeles condominiums, West Hollywood condos, West Hollywood townhomes, West Hollywood real estate, West Hollywood new construction, West Hollywood condominiums, Santa Monica condos, Santa Monica townhomes, Santa Monica, real estate, Santa Monica new construction, Santa Monica condominiums, San Fernando Valley condos, San Fernando Valley townhomes, San Fernando Valley real estate, San Fernando Valley new construction, San Fernando Valley condominiumsIt was another down week for mortgage application activity.  The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of application volume, fell 5.5 percent on a seasonally adjusted basis during the week ended December 13 and was down 6 percent on a non-adjusted basis compared to the week ended December 6.

“Mortgage applications fell further last week, with the market index falling to its lowest level in more than a dozen years,” said Mike Fratantoni, MBA’s Vice President of Research and Economics.  “Both purchase and refinance applications fell as interest rates increased going into today’s Federal Open Market Committee meeting.”

The MBA’s Refinance Index was down 4 percent from the previous week but refinancing’s share of all activity increased from 65 percent to 66 percent.  The seasonally adjusted Purchase Index dropped 6 percent to its lowest level since December 2012.  The unadjusted Purchase Index decreased 9 percent compared with the previous week and was 12 percent lower than the same week one year ago.

Mortgage rates were mixed.  The 30-year fixed-rate mortgage (FRM) with conforming balances of $417,000 or less had an average contract rate of 4.62 percent, the highest since September, with 0.38 point.  The previous week the rate was 4.61 percent with 0.26 point.  The effective rate also increased.

The jumbo 30-year FRM (balances over $417,000) had an average contract rate of 4.61 percent, an increase of 2 basis points from the previous week, and points increased from 0.15 to 0.24.  This was also the highest contract rate since September and the effective rate increased as well.

Both the contract and effective rates for 30-year FRM backed by the FHA were down from the previous week with the contract rate at 4.25 percent compared to 4.30 percent.  Points decreased to 0.32 from 0.38.

Average rates for 15-year FRM were unchanged at 3.66 percent.  Points increased to 0.35 from 0.31 and the effective rate rose. .

The share of adjustable rate mortgages remained unchanged at 8 percent of total applications.  Both the average contract rate and effective rate of the 5/1 ARM increased with the contract rate rising 9 basis points to 3.20 percent and points up to 0.42 from 0.35.

Application volume and rate information are compiled by MBA from its Weekly Mortgage Application Survey which has been conducted since 1990.  Rates are quoted for loans with an 80 percent loan-to-value ratio and points include the origination fee.  Base period and value for indexes is March 16, 1990=100.

DRE #00598428
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed

“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”