Purchase Activity Up Slightly Despite Shorter Week

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The short business
week preceding the Thanksgiving holiday resulted, as usual, in fewer mortgage applications.  The Mortgage Bankers Association said its
Market Composite Index, a measure of loan application volume, was down 3.1
percent
on a seasonally adjusted basis during the week ended November 24, with results
adjusted to account for the holiday.  On
a non-adjusted basis volume fell 34 percent.

The Refinance
Index
was down 8 percent when compared to the week ended November 17, falling
to its lowest level since January.  The
refinance share of all applications was 48.7 percent compared to 49.9 percent
the week before.

There
was a 2 percent increase in the seasonally adjusted Purchase Index, bringing it
to the highest level in two months.  On
an unadjusted basis the index was 32 percent lower than the prior week but 6 percent
higher than in the same week in 2016.  

Refi Index vs 30yr Fixed

Purchase Index vs 30yr Fixed

Applications
for FHAbacked mortgages accounted for 10.8 percent of applications, up from
10.6 percent the previous week.  The VA
share increased to 11 percent from 10.7 percent and the USDA share from 0.7
percent to 0.8 percent.

Interest rates
were mixed.  The average contract
interest rate for 30-year fixed-rate mortgages (FRM) with conforming loan
balances of $424,100 or less was unchanged from a week before at 4.20 percent.   Points
decreased to 0.34 from 0.42, lowering the effective rate.

The jumbo version
of the 30-year FRM, loans with balances greater than $424,100, decreased to
4.14 percent from 4.16 percent.  Points
dropped to 0.27 from 0.30 and the effective rate decreased.   

The average
contract interest rate for 30-year FRM backed by the FHA decreased to 4.07
percent with 0.37 point from 4.08 percent and 0.42 point.  The effective rate declined.  

Fifteen-year FRM
had an average contract rate of 3.57 percent, 1 basis point higher than the
week before.  Points were down to 0.40
from 0.42 but the effective rate still increased.

The average contract
interest rate for 5/1 adjustable rate mortgages (ARMs) increased to 3.42
percent from 3.31 percent, with
points increasing to 0.58 from 0.38.  The
effective rate increased from the prior week. 
The ARM share of applications decreased to 6.2 percent of total
applications from the 6.5 percent share a week earlier.

MBA’s Weekly Mortgage Applications Survey has been
conducted since 1990 and covers over 75 percent of all U.S. retail residential
mortgage applications.  Respondents
include mortgage bankers, commercial banks and thrifts.  Base period and value for all indexes is
March 16, 1990=100 and interest rate information is based on loans with an 80
percent loan-to-value ratio and points that include the origination fee.

 

 



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