30-Year Fixed Tops 5% in MBA Weekly Survey

MBA NewsLink Staff

October 10, 2018

Mortgage applications fell last week as key interest rates topped 5 percent for the first time since 2011, the Mortgage Bankers Association's reported this morning in its Weekly Mortgage Applications Survey for the week ending October 5.

The Market Composite Index decreased by 1.7 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 (unadjusted) Refinance Index decreased by 3 percent from the previous week. The refinance share of mortgage activity decreased to 39.0 percent of total applications from 39.4 percent the previous week.

The seasonally adjusted Purchase Index decreased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 1 percent compared to the previous week and was 2 percent higher than the same week one year ago.

The FHA share of total applications increased to 10.5 percent from 10.2 percent the week prior. The VA share of total applications remained unchanged at 10.0 percent from the week prior. The USDA share of total applications increased to 0.8 percent from 0.7 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to its highest level since February 2011, 5.05 percent, from 4.96 percent, with points increasing to 0.51 from 0.49 (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) increased to its highest level since July 2011, 4.99 percent, from 4.93 percent, with points increasing to 0.35 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 its highest level since April 2011, 4.98 percent, from 4.95 percent, with points decreasing to 0.63 from 0.80 (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 increased to its highest level since April 2010, 4.44 percent, from 4.39 percent, with points increasing to 0.58 from 0.50 (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 its highest level since the series began in 2011, 4.29 percent, from 4.24 percent, with points increasing to 0.52 from 0.48 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity increased to 7.3 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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