U.S. Mortgage Applications Dip in Early September

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According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending September 5, 2014, mortgage applications decreased 7.2 percent from one week earlier.
 
The Market Composite Index, a measure of mortgage loan application volume, decreased 7.2 percent on a seasonally adjusted basis from one week earlier, to the lowest level since December 2000.  On an unadjusted basis, the Index decreased 17 percent compared with the previous week.

The Refinance Index decreased 11 percent from the previous week, to the lowest level since November 2008.  The seasonally adjusted Purchase Index decreased 3 percent from one week earlier, to the lowest level since February 2014.  The unadjusted Purchase Index decreased 14 percent compared with the previous week and was 12 percent lower than the same week one year ago.

The refinance share of mortgage activity decreased to 55 percent of total applications from 57 percent the previous week.  The adjustable-rate mortgage (ARM) share of activity decreased to 7.5 percent of total applications from 7.8 percent the previous week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.27 percent, the first increase in four weeks, from 4.25 percent, with points increasing to 0.25 from  0.24 (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) decreased to 4.15 percent from 4.22 percent, with points increasing to 0.23 from 0.19 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.97 percent from 3.99 percent, with points increasing to 0.08 from 0.03 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.44 percent from 3.48 percent, with points decreasing to 0.28 from 0.30 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.12 percent from 3.19 percent, with points remaining unchanged at 0.45 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.