Applications, Rates Flat in MBA Weekly Survey

MBA NewsLink Staff

July 03, 2019


Mortgage applications didn't show much movement last week, and neither did mortgage interest rates, the Mortgage Bankers Association reported this morning in its Weekly Applications Survey for the week ending June 28.

The Market Composite Index decreased by 0.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 0.3 percent compared to the previous week.

The unadjusted Refinance Index decreased by 1 percent from the previous week. The refinance share of mortgage activity decreased to 51.0 percent of total applications from 51.5 percent the previous week.

The seasonally adjusted Purchase Index increased by 1 percent from one week earlier. The unadjusted Purchase Index increased by 1 percent compared to the previous week and was 10 percent higher than the same week one year ago.

The FHA share of total applications increased to 10.1 percent from 9.6 percent the week prior. The VA share of total applications increased to 12.8 percent from 12.5 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.

"Purchase applications picked up slightly last week, as conventional and government activity were each up around 1 percent," said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. "Furthermore, in continuation of the gradual growth trend seen throughout the first half of 2019, purchase activity was almost 10 percent higher than a year ago. A still-strong job market, improving affordability and lower mortgage rates continue to support growth."

Kan said conventional refinances dropped slightly over the week, but noted a pick-up in government refinances, with FHA activity jumping 17 percent. "Additionally, the average loan amount for government refinance applications reached another survey high at $282,500," he said. "In a week of mixed mortgage rate movements across the various loan types, the 30-year fixed rate finished slightly higher than last week, but was still close to lows last seen in 2016."

MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.07 percent from 4.06 percent, with points increasing to 0.36 from 0.35 (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 $484,350) remained unchanged at 4.00 percent, with points increasing to 0.25 from 0.24 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 3.97 percent from 4.01 percent, with points decreasing to 0.30 from 0.36 (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 3.42 percent from 3.40 percent, with points increasing to 0.32 from 0.31 (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 3.46 percent from 3.50 percent, with points decreasing to 0.26 from 0.29 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The ARM share of activity decreased to 5.2 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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