Applications Increase in MBA Weekly Survey

MBA NewsLink Staff

April 18, 2018


Mortgage applications increased 4.9 percent from one week earlier, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending April 13.

The Market Composite Index increased by 4.9 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 increased by 4 percent from the previous week. The refinance share of mortgage activity decreased to 37.6 percent of total applications--the lowest share since September 2008--from 38.4 percent the previous week.

The seasonally adjusted Purchase Index increased by 6 percent from one week earlier. The unadjusted Purchase Index increased by 7 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 10.6 from 11 percent the week prior. The VA share of total applications decreased to 10.4 percent from 10.9 percent the week prior. The USDA share of total applications remained unchanged at 0.8 percent from the week prior.

"Rates were roughly flat compared to last week, as the downward pressure of geopolitical uncertainty offset the upward pressure of higher inflation and Fed minutes that signaled greater certainty of rate hikes this year," said MBA Chief Economist Mike Fratantoni. "Home purchase applications strengthened both on a week to week and year over year basis, following a two week slowdown driven in part by late season winter weather and the Easter holiday. Conventional home purchase applications drove most of the increase in purchase activity relative to government purchase loans."

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained uncanged at 4.66 percent, with points unchanged at 0.46 (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 $453,100) remained unchanged at 4.53 percent, with points increasing to 0.38 from 0.31 (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 4.70 percent from 4.66 percent, with points decreasing to 0,53 from 0.76 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at to 4.08 percent, with points decreasing to 0.47 from 0.50  (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 3.94 percent from 3.93 percent, with points decreasing to 0.43 from 0.60 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity increased to 6.6 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.

Share this article