Drop in Mortgage Applications During the Holiday Period

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The applications for mortgage loans declined by 9.1% over the two-week period from December 19th 2014 to January 2nd 2015, according to the Mortgage Bankers Association. The data for both weeks, which were covered in the latest Weekly Mortgage Applications Survey, was adjusted for the Christmas holidays and for the New Year’s holidays respectively.

On a seasonally adjusted basis, the Market Composite Index, which measures the total volume of applications for home loans, declined by 9.1%. On an unadjusted basis, it dropped by 37%.

The seasonally unadjusted Refinance Index declined by 12% in the period ended January 2nd. While the total number of applications for mortgage refinance decreased during the two-week period, their share rose to 65% in the week ended January 2nd compared to the week ended December 26th when it was 63%. In the week ended December 19th, it was 67%.
The seasonally adjusted Purchase Index dropped by 5% from the week ending December 19th. On an unadjusted basis, the decline in applications for home purchase loans was 33%. In the same period one year ago, the Purchase Index was 8% higher than it is now.

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The share of applications for FHA loans rose slightly from 9.2% to 9.3% during the period. The share of applications for FHA loans rose to 10.7% from 10.5% in the week ended December 19th.
The MBA data on mortgage rates was presented on a weekly basis. The average contract rate on a 30-year fixed-rate conforming mortgage loan decreased to 4.01% in the week ended January 2nd compared from 4.04% in the week ended December 26th. The average contract rate on a 30-year fixed-rate FHA loan was 3.81% down from 3.82% in the week before. The average contract rate on a 15-year fixed-rate home loan declined to 3.24% from 3.32%. The average contract interest rate on a 5-year adjustable-rate hybrid mortgage loan went down to 3.19% from 3.26%.



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

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