Applications Rise in MBA Weekly Survey
Mortgage applications rose for the first time in six weeks as key interest rates held steady, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending August 17.
All three indexes rose from the previous week. The Market Composite Index increased by 4.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 3 percent compared to the previous week.
The (unadjusted) Refinance Index increased by 6 percent from the previous week. The refinance share of mortgage activity increased to 38.7 percent of total applications from 37.6 percent the previous week.
The seasonally adjusted Purchase Index increased by 3 percent from one week earlier. The unadjusted Purchase Index increased by 1 percent compared to the previous week and was 1 percent higher than the same week one year ago.
The FHA share of total applications decreased to 10.2 percent from 10.4 percent the week prior. The VA share of total applications decreased to 10.5 percent from 10.6 percent the week prior. The USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
“Treasury rates dropped last week, as continuing worries over Turkey’s currency and ongoing trade tensions spurred a flight to quality by global investors,” ” said Joel Kan, MBA Associate Vice President of Economic and Industry Forecasting. “After several weeks of declining application activity, both purchase and refinance applications increased last week.”
Kan said despite the increase in purchase applications, the remained below their 2018 average “due to persistent problems of affordability and low inventory.”
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged at 4.81 percent, with points decreasing to 0.42 from 0.43 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) decreased to 4.68 percent from 4.73 percent, with points decreasing to 0.28 from 0.29 (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 increased to 4.82 percent from 4.77 percent, with points increasing to 0.69 from 0.68 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 4.25 percent from 4.27 percent, with points decreasing to 0.47 from 0.52 (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 4.00 percent from 4.06 percent, with points increasing to 0.52 from 0.48 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity increased to 6.5 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.
