Applications Down Again in MBA Weekly Survey

MBA NewsLink Staff

August 23, 2017


Mortgage applications fell again from one week earlier as little changed over the past several weeks, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending August 18.

The Market Composite Index decreased by 0.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 2 percent compared to the previous week.

The Refinance Index increased by 0.3 percent from the previous week. The refinance share of mortgage activity increased to 48.7 percent of total applications from 47.8 percent the previous week.

The seasonally adjusted Purchase Index decreased by 2 percent from one week earlier. The unadjusted Purchase Index decreased by 3 percent compared to the previous week and was 9 percent higher than the same week one year ago.

"The average rate on 30-year conforming loans was unchanged; however, the jumbo rate decreased 5 basis points over the week," said Joel Kan, MBA Associate Vice President of Industry Surveys and Forecasting. "Both rates are at their lowest levels since November 2016. The spread between the two rates widened again, with the jumbo rate 13 basis points lower than the conforming rate, the largest spread between the two since March 2016."

Kan added a "strong appetite for jumbo loans and a highly competitive jumbo market has led to increased availability and lower pricing of jumbo loans over the past few years."

The FHA share of total applications decreased to 10.1 percent from 10.2 percent the week prior. The VA share of total applications decreased to 10.2 percent from 10.5 percent the week prior. The USDA share of total applications remained unchanged from the week prior at 0.8 percent.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged from the week prior at 4.12 percent, with points increasing to 0.39 from 0.38 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) decreased to 3.99 percent from 4.04 percent, with points decreasing to 0.26 from 0.27 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to 4.02 percent from 4.01 percent, with points decreasing to 0.37 from 0.40 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.40 percent from 3.41 percent, with points increasing to 0.38 from 0.35 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 3.27 percent from 3.34 percent, with points increasing to 0.31 from 0.29 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity decreased to 6.4 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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