Mortgage Apps up 0.6 Percent

By October 25, 2016News, Uncategorized

Mortgage applications increased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Oct. 14 (with an adjustment included for the Columbus Day holiday).

The Market Composite Index, a measure of mortgage loan application volume, increased 0.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 9 percent compared with the previous week. The Refinance Index decreased 1 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index decreased 7 percent compared with the previous week and was 13 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 61.5 percent of total applications from 62.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 4.1 percent of total applications.

The FHA share of total applications increased to 11.3 percent from 10.9 percent the week before. The VA share of total applications increased to 12.8 percent from 12.0 percent the week before. The USDA share of total applications remained unchanged at 0.7 percent from the week before.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances $417,000 or less increased to its highest level since June 2016—3.73 percent, from 3.68 percent, with points increasing to 0.36 from 0.35 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances greater than $417,000 increased to its highest level since June 2016—3.72 percent, from 3.67 percent, with points increasing to 0.29 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.54 percent, with points increasing to 0.30 from 0.23 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since June 2016—3.03 percent, from 2.97 percent, with points decreasing to 0.27 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 ARMs increased to its highest level since May 2016, 2.97 percent, with points increasing to 0.41 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.