Applications Back Down in MBA Weekly Survey

MBA NewsLink Staff

October 25, 2017


Mortgage applications fell for the fifth time in six weeks as key interest rates crept up, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending October 20.

The previous week's results included an adjustment for the Columbus Day holiday.

The Market Composite Index decreased by 4.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 6 percent compared to the previous week.

The Refinance Index decreased by 3 percent from the previous week. The refinance share of mortgage activity increased to 49.5 percent of total applications from 48.6 percent the previous week.

The seasonally adjusted Purchase Index decreased by 6 percent from one week earlier. The unadjusted Purchase Index increased by 4 percent compared to the previous week and was 10 percent higher than the same week one year ago.

The FHA share of total applications decreased to 9.8 percent from 10.4 percent the week prior. The VA share of total applications decreased to 10.1 percent from 10.5 percent the week prior. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.

"Rates increased late last week as the market responded to news of a Senate budget plan which may positively impact tax reform progress and more speculation around the future leadership of the Federal Reserve said Joel Kan, MBA Associate Vice President for Industry Surveys and Forecasting.

MBA said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.18 percent from 4.14 percent, with points decreasing to 0.42 from 0.44 (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) decreased to 4.11 percent from 4.13 percent, with points decreasing to 0.24 from 0.32 (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 4.04 percent from 4.00 percent, with points increasing to 0.41 from 0.37 (including the 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 3.48 percent from 3.45 percent, with points decreasing to 0.40 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 3.29 percent from 3.31 percent, with points increasing to 0.54 from 0.40 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity increased 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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