Applications Back Up in MBA Weekly Survey

MBA NewsLink Staff

May 10, 2017

Mortgage applications rebounded from one week earlier as key interest rates held steady, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending May 5.

The Market Composite Index increased 2.4 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 3 percent compared to the previous week.

The Refinance Index increased 3 percent from the previous week. The refinance share of mortgage activity increased to 41.9 percent of total applications from 41.6 percent the previous week.

The seasonally adjusted Purchase Index increased 2 percent from one week earlier to its highest level since October 2015. The unadjusted Purchase Index increased 2 percent compared to the previous week and was 6 percent higher than the same week one year ago. The seasonally adjusted Conventional Purchase Index increased 2 percent from the previous week to its highest level since April 2009.

"Continuing strength in the job market and improving consumer confidence drove overall purchase applications to increase last week," said MBA Associate Vice President of Industry Surveys and Forecasting Joel Kan. "The index for purchase applications reached its highest level since the beginning of October 2015, which was the week prior to the implementation of the federal government's Know Before You Owe rule."

The FHA share of total applications increased to 10.5 percent from 10.4 percent the week prior. The VA share of total applications remained unchanged at 10.8 percent from the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.23 percent, with points decreasing to 0.31 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 $424,100) increased to 4.22 percent from 4.18 percent, with points increasing to 0.28 from 0.23 (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 4.09 percent from 4.06 percent, with points increasing to 0.28 from 0.24 (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 decreased to 3.50 percent from 3.51 percent, with points increasing to 0.40 from 0.32 (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 3.36 percent from 3.29 percent, with points increasing to 0.15 from 0.14 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity decreased to 8.2 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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