Mortgage Applications Surge 5%; Purchase Apps at 3-Year High

Mortgage Applications Surge 5%; Purchase Apps at 3-Year HighMortgage applications for both purchases and refinances saw a robust gain of 5 percent last week, as more consumers are staying away from government-backed loans, according the Mortgage Bankers Association.
The group’s seasonally-adjusted index that measures purchases increased 4 percent for the week ending April 12, 2013, compared to one week earlier, reaching its highest level since May of 2010.
Its Refinance Index increased 5 percent from the previous week and is at its highest level since
mid-January of 2013.
The two components combined, the Market Composite Index, increased 4.8 percent on a seasonally adjusted basis from one week earlier.
The mortgage bankers’ adjusted Conventional Purchase Index increased 3 percent to the highest level since October 2009. More consumers are turning to conventional loans — those not backed or guaranteed by the government — following the FHA’s April 1 increase in mortgage insurance fees.
The refinance share of mortgage activity was unchanged at 75 percent of total applications from the previous week. The adjustable-rate mortgage (ARM) share of activity was unchanged at 5 percent of total applications.
Here is the MBA’s rundown on interest rates:
The average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,500 or less), decreased to 3.67 percent from 3.68 percent, for 80 percent loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages, with jumbo loan balances (greater than $417,500), decreased to 3.77 percent from 3.79 percent, for 80 percent LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.37 percent from 3.43 percent, for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.91 percent from 2.92 percent, for 80 percent LTV loans.

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