Mortgage Applications Take a Deep Plunge

mortgage applications

The Market Composite Index, which is a measure of the mortgage application volume in the United States compiled by the Mortgage Bankers Association, went down by 7.2% on a seasonally adjusted basis in the week ended September 5th 2014. The figure was adjusted to account for the Labor Day holiday. On an unadjusted basis, the applications fell by 17% from the previous week ended August 29th.

During the week ended September 5th, the Index experienced its largest drop since the week ended June 13th 2014. At present, the volume of mortgage applications is at its lowest level since December 2000.

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The Purchase Index, which indicates the volume of applications for home purchase loans, decreased by 3% on a seasonally adjusted basis during the week ended September 5th. Currently, it is at its lowest level since February 2014. On an unadjusted basis, it decreased by 14% from the previous week. The unadjusted index is currently 12% below its level from the same week of 2013.
the Refinance Index, which measures the volume of applications for mortgage refinance, went down by 11% during the week ended September 5th. This was its largest weekly decrease since June 2013. At present, the Refinance Index is at its lowest level since November 2008.

The share of applications for mortgage refinance dropped to 55% during the week ended September 5th from 57% during the week before. The share of applications for adjustable rate mortgage loans decreased as well. It went down to 7.5% from 7.8% during the previous week.

The interest rate data presented in the Weekly Mortgage Application Survey indicates that only the average rate on the 30-year fixed mortgage loans went up. It rose to a level of 4.27% from 4.25% during the week ended August 29th. The average rates on all other types of mortgages covered by the Survey marked a decrease.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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