Applications for mortgages,
both for home purchases and refinancing, declined during the week ended
December 8. The Mortgage Bankers
Association (MBA) said its Market Composite Index, a measure of loan
application volume, was down 2.3 percent on a seasonally adjusted basis compared
to the volume a week earlier. On an
unadjusted basis, the Index decreased 4 percent.
purchases decreased 1 percent on a seasonally adjusted basis from the week
ended December 1, and the unadjusted version of the Purchase Index was down 6
percent. The unadjusted index remained
10 percent higher than during the same week in 2016.
Index was 3 percent lower than the prior week, but the share of applications
that were for refinancing increased to 52.4 percent from 51.6 percent. It was
the second largest share garnered by refinancing thus far in 2017, only
slightly below the 53 percent share during the week ended January 13.
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
for FHA mortgages increased to 11.8 percent of the week’s total from 11.1
percent the previous week. The VA share dipped to 10.3 percent from 10.7 percent
and USDA applications decreased to 0.7 percent from 0.8 percent.
contract interest rate for 30-year fixed-rate mortgages (FRM) with conforming
loan balances of $424,100 or less increased to 4.20 percent from 4.19 percent. Points declined to 0.39 from 0.40 and the
effective rate was higher than the previous week.
The rate for jumbo
30-year FRM, loans with balances greater than $424,100, averaged 4.11 percent,
down from 4.16 percent. Points were unchanged
at 0.28 and the effective rate declined.
contract interest rate for 30-year FRM backed by the FHA was the highest since
April, 4.13 percent with 0.39 point, and the effective rate moved higher. The prior week the rate was 4.11 percent with
Fifteen-year FRM rates
rose to the highest average level since March, 3.61 percent compared to 3.59
percent the prior week. Points were down
from 0.48 to 0.44, but the effective rate increased.
contract interest rate for 5/1 adjustable rate mortgages (ARMs) decreased by 6
basis points to 3.42 percent. Points
increased to 0.48 from 0.46 and the effective rate moved lower. The ARM share of applications decreased to 5.6
percent from 5,7 percent.
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.