Rates Drop, Refi Applications Surge in MBA Weekly Survey
Mortgage applications increased 9.3 percent from one week earlier, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending February 5.
The Market Composite Index increased by 9.3 percent on a seasonally adjusted basis. On an unadjusted basis, the Index increased by 12 percent compared to the previous week.
The Refinance Index increased 16 percent from the previous week. The refinance share of mortgage activity increased slightly to 61.2 percent of total applications from 59.2 percent the previous week.
The seasonally adjusted Purchase Index increased by 0.2 percent from one week earlier and the unadjusted Purchase Index increased by 7 percent compared to the previous week and was 25 percent higher than the same week one year ago.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.91 percent, its lowest level since April, from 3.97 percent, with points unchanged at 0.41 (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 its lowest level since April 2013, 3.76 percent, from 3.84 percent, with points increasing to 0.30 from 0.26 (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 its lowest level since April, 3.18 percent, from 3.80 percent, with points increasing to 0.38 from 0.37 (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 its lowest level since April, 3.18 percent, from 3.22 percent, with points increasing to 0.38 from 0.37 (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 decreased to its lowest level since October, 2.96 percent, from 3.00 percent, with points decreasing to 0.30 from 0.34 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity increased to 6.4 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.
