Please ensure Javascript is enabled for purposes of website accessibility

Weekly Mortgage Applications Decline 4%

By Tim Brugger - Apr 3, 2013 at 3:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Mortgage Bankers Association's index also cites a marked decline in mortgage refinancings.

The number of mortgage applications for the week ending March 29 declined 4% on a seasonally adjusted basis compared to the prior week's data, according to a report released today.

The overall decline was primarily due to a 6% drop in the refinance index, according to the latest Market Composite Index survey compiled by the Mortgage Bankers Association (MBA). Refinancing accounted for 74% of all mortgage applications, down from the prior week's 75%.

The drop in refinance mortgage applications was partially offset by a 1% seasonally adjusted improvement in purchase applications. The number of purchase applications for government loans jumped nearly 7%, and was "likely driven by borrowers applying for loans prior to the scheduled increase in FHA [Federal Housing Administration] premiums that took effect on April 1," according to Mike Fratantoni, vice president of research and economics at MBA.

Rates for 30-year fixed mortgages backed by the FHA, 30-year fixed conventional, and 30-year jumbo fixed mortgages (loan balances of $417,500 or greater), all declined versus the previous week. Of the mortgage types tracked by the MBA survey, 5/1 adjustable-rate mortgages (ARMs) saw the only weekly increase in average rate, rising two basis points to 2.60%.

The weekly mortgage survey consists of more than 75% of all U.S. retail mortgage applications, and has been conducted since 1990.


Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.