Applications Up Slightly in MBA Weekly Survey

MBA NewsLink Staff

November 22, 2017

 

Mortgage applications increased from one week earlier as an uptick in purchase applications offset a decrease in refinancings, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending November 17. 

The Market Composite Index increased by 0.1 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 decreased by 5 percent from the previous week. The refinance share of mortgage activity decreased to 49.9 percent of total applications from 51.3 percent the previous week.

The seasonally adjusted Purchase Index increased by 5 percent from one week earlier. The unadjusted Purchase Index increased by 1 percent compared to the previous week and was 4 percent higher than the same week one year ago.

The FHA share of total applications increased to 10.6 percent from 10.2 percent the week prior. The VA share of total applications increased to 10.7 percent from 10.1 percent the week prior. The USDA share of total applications remained unchanged from the week prior at 0.7 percent.

"Purchase applications increased last week following Veterans Day week and remained 4.1 percent higher than the same week one year ago," said MBA Associate Vice President of Industry Surveys and Forecasting Joel Kan. "Refinance activity, already extremely sensitive to rate movements, decreased 4.8 percent, the fourth weekly decrease in five weeks. The increase in overall purchase applications was driven by increases in all loan types; conventional, FHA, and VA purchase loans."

MBA said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.20 percent from 4.18 percent, with points increasing to 0.42 from 0.40 (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 4.12 percent, with points increasing to 0.30 from 0.26 (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 its highest level since July, 4.08 percent, from 4.05 percent, with points increasing to 0.42 from 0.40 (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 its highest level since March, 3.56 percent, from 3.54 percent, with points decreasing to 0.42 from 0.43 (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 decreased to 3.31 percent from 3.41 percent, with points increasing to 0.38 from 0.37 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 6.5 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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