Applications Strong in MBA Weekly Survey

MBA NewsLink Staff

December 06, 2017

 

Mortgage applications increased by nearly 5 percent from one week earlier as key interest rates dropped slightly, the Mortgage Bankers Association reported in its Weekly Mortgage Applications Survey for the week ending December 1. 

The prior week's results included an adjustment for the Thanksgiving holiday.

The Market Composite Index increased by 4.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 47 percent compared to the previous week. 

The Refinance Index increased by 9 percent from the previous week. The refinance share of mortgage activity increased to its highest level since September, 51.6 percent of total applications, from 48.7 percent the previous week.

The seasonally adjusted Purchase Index increased by 2 percent from one week earlier. The unadjusted Purchase Index increased by 38 percent compared to the previous week and was 8 percent higher than the same week one year ago.

The FHA share of total applications increased to 11.1 percent from 10.8 percent the week prior. The VA share of total applications decreased to 10.7 percent from 11.0 percent the week prior. The USDA share of total applications remained unchanged from the week prior at 0.8 percent.

"Application volume bounced back after Thanksgiving, with refinance volume increasing on a slight dip in 30-year rates," said MBA Chief Economist Mike Fratantoni. "The refinance share is at its highest level since September. Purchase volume continues to be supported by a strengthening job market."

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.19 percent from 4.20 percent, with points increasing to 0.40 from 0.34 (including origination fee) for 80 percent loan-to-value ratio 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 $424,100) increased to 4.16 percent from 4.14 percent, with points increasing to 0.28 from 0.27 (including 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 FHA increased to 4.11 percent from 4.07 percent, with points increasing to 0.40 from 0.37 (including 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 3.59 percent from 3.57 percent, with points increasing to 0.48 from 0.40 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 3.48 percent from 3.42 percent, with points decreasing to 0.46 from 0.58 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity decreased to its lowest level since January, 5.7 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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