Applications Flat in MBA Weekly Survey
Mortgage applications remained unchanged from one week earlier as key interest rates fell, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending November 3.
The Market Composite Index remained unchanged on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased by 1 percent compared to the previous week.
The Refinance Index decreased by 1 percent from the previous week. The refinance share of mortgage activity increased to 49.0 percent of total applications from 48.7 percent the previous week.
The seasonally adjusted Purchase Index increased by 1 percent from one week earlier. The unadjusted Purchase Index decreased by 2 percent compared to the previous week and was 9 percent higher than the same week one year ago.
The FHA share of total applications increased to 10.6 percent from 10.4 percent the week prior. The VA share of total applications increased to 10.0 percent from 9.9 percent the week prior. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
“Treasury yields weakened last week following the release of more details around the administration’s tax reform plan and the announcement of a new Fed chair,” said MBA Associate Vice President of Research and Economics Joel Kan. “The 30-year fixed rate fell for only the second time since September. Overall mortgage application activity was unchanged, as the rate movement did little to spur refinances, which fell slightly, and we saw a small increase in home purchase applications.”
MBA said the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.18 percent from 4.22 percent, with points decreasing to 0.38 from 0.43 (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 $424,100) decreased to 4.12 percent from 4.16 percent, with points decreasing to 0.24 from 0.27 (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 4.05 percent from 4.07 percent, with points decreasing to 0.43 from 0.46 (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 3.51 percent from 3.52 percent, with points remaining unchanged at 0.44 (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 remained unchanged from the week prior at 3.33 percent, with points increasing to 0.59 from 0.50 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The ARM share of activity decreased to 6.6 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.
