Mortgage Applications Soar in MBA Weekly Survey
Mortgage applications jumped sharply ahead of new mortgage applications requirements, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending October 2.
The Market Composite Index increased by 25.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 26 percent compared to the previous week.
The Refinance Index increased by 24 percent from the previous week. The refinance share of mortgage activity decreased to 57.4 percent of total applications from 58.0 percent the previous week.
The seasonally adjusted Purchase Index increased by 27 percent from one week earlier. The unadjusted Purchase Index increased by 27 percent compared to the previous week and was 49 percent higher than the same week one year ago.
“The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change,” said MBA Vice President of Research and Economics Lynn Fisher.
The FHA share of total applications decreased to 12.7 percent from 13.8 percent the week prior. The VA share of total applications decreased to 9.2 percent from 10.3 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99 percent, the lowest level since May, from 4.08 percent, with points increasing to 0.46 from 0.45 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.89 percent, the lowest level since April, from 3.96 percent, with points decreasing to 0.25 from 0.35 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA decreased to 3.80 percent, the lowest level since May, from 3.87 percent, with points increasing to 0.35 from 0.34 (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 decreased to 3.24 percent, the lowest level since May, from 3.29 percent, with points decreasing to 0.38 from 0.41 (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 2.96 percent from 2.95 percent, with points decreasing to 0.32 from 0.41 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity increased to 7.6 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.
