The MBA's seasonally adjusted Market Composite Index, a measure of loan application volume, rose 4.5 percent during the week ended January 6, with an adjustment to reflect the holiday shortened week. The volume was up from the previous week by 34.4 percent on an unadjusted basis.
The seasonally adjusted Purchase Index rose 8.1 percent from the week ended December 30, 2011 and, unadjusted, increased 41.9 percent. The unadjusted volume was 17.9 percent below that of the same week in 2011. The Refinance Index grew 3.3 percent.
The indices' four week moving averages were down for the week. Seasonally adjusted Market and Purchase Indices fell 0.53 percent and 1.92 percent respectively and the Refinance Index was down 0.09 percent.
Refinancing as a share of overall activity decreased slightly to 80.8 percent from the all time high of 81.9 percent the previous week. The share held by adjustable-rate mortgages (ARM) increased to 5.4 percent of all applications from 4.7 percent at the end of the year.
Mortgage rates were mixed. The average contract interest rate for conforming (those with loan balances of $417,500 or less) 30-year fixed-rate mortgages (FRM) increased to 4.11 percent with 0.41 point from 4.07 percent with 0.53 point. The effective rate increased.
The rate for jumbo 30-year FRM (loan balances over $417,500) decreased to 4.34 percent from 4.41 percent with points rising to 0.47 from 0.44 point and the effect rate decreased.
Rates for FHA backed 30-year FRM were unchanged at 3.96 percent although points increased from 0.71 to 0.72. The effective rate was unchanged.
The rate for 15-year FRM increased 3 basis points to 3.40 percent with points dropping to 0.37 from 0.50 and the rate for 5/1 ARMs decreased to 2.90 percent from 2.91 percent, with points increasing to 0.49 from 0.48. The effective rate of both products decreased.
All rates are for 80 percent loan to value originations and all points include the origination fee.
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. by Jann Swanson
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