Mortgage Apps Jump 10% in MBA Weekly Survey

MBA NewsLink Staff 

April 13, 2016


Mortgage applications increased by 10 percent from one week earlier as key interest rates hit a 15-month low, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending April 8.

MBA said applications increased for the second consecutive week.

The Market Composite Index increased by 10 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 10 percent compared to the previous week.

The Refinance Index increased by 11 percent from the previous week to its highest level since February. The refinance share of mortgage activity increased to 54.9 percent of total applications from 54.5 percent the previous week.

The seasonally adjusted Purchase Index increased by 8 percent from one week earlier its highest level since October. The unadjusted Purchase Index increased by 9 percent compared to the previous week and was 24 percent higher than the same week one year ago.

"Rates dropped last week in response to concerns about further slowing in global growth, despite the fact that the U.S. job market continues to show real strength," said MBA Chief Economist Mike Fratantoni. "Rates also are increasingly volatile as markets react to different signals regarding the future path for the Fed. This drop in rates is providing what will likely be only a temporary boost in refi activity."

The FHA share of total applications decreased to 10.8 percent from 11.3 percent the week prior. The VA share of total applications decreased to 11.9 percent from 12.2 percent the week prior. The USDA share of total applications remained unchanged to 0.8 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.82 percent from 3.86 percent, the lowest level since January 2015, with points increasing to 0.33 from 0.32 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.74 percent from 3.76 percent, with points increasing to 0.31 from 0.27 (including origination fee) for 80 percent LTV loans. This is the lowest rate since February. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 3.66 percent from 3.73 percent, with points decreasing to 0.29 from 0.36 (including origination fee) for 80 percent LTV loans. This is the lowest rate since April 2015. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 3.10 percent, with points remaining unchanged at 0.37 (including origination fee) for 80 percent LTV loans. The effective rate was unchanged from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 2.94 percent from 2.94 percent, with points decreasing to 0.2 from 0.26 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 5 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.

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