Loan applications shoot up, but lag last year

The Mortgage Bankers Association (MBA) says loan application volume for the week ending Dec. 4 increased 8.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the change was 54.0 percent compared with the previous week, which was shortened by Thanksgiving.

Activity for refinancings was up 11.1 percent from the previous week, rising on a seasonally adjusted basis by 4.0 percent from the previous week.

Unadjusted, purchase volume was 41.7 percent higher than the previous week but 18.8 percent lower than the same week one year ago.

The increase in purchase applications reflected a 10.0 percent increase in Government Purchase applications and a 0.2 percent decrease in Conventional Purchase applications, both on a seasonally adjusted basis.

The refinance share of mortgage activity increased to 74.4 percent of total applications from 72.1 percent the previous week, and the adjustable-rate mortgage (ARM) share slipped to to 4.7 percent from 4.8 percent.

The average contract interest rate for 30-year fixed-rate mortgages increased to 4.88 percent from 4.79 percent, with points increasing to 1.17 from 1.00 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans. The rate ends a six-week run of declining 30-year fixed rates and, the MBA speculated, may have triggered the increase in refinance applications.

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Malcolm Carter

Licensed Associate Real Estate Broker

Senior Vice President

Charles Rutenberg Realty

127 E. 56th Street

New York, NY 10022

M: 347-886-0248

F: 347-438-3201

Web site

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