Weekly Applications Rise in MBA Weekly Survey
Mortgage applications increased by nearly 10 percent from one week earlier, the Mortgage Bankers Association reported this morning in its Weekly Mortgage Applications Survey for the week ending November 8.
The Market Composite Index increased by 9.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 9 percent compared to the previous week.
The unadjusted Refinance Index increased by 13 percent from the previous week and was 188 percent higher than the same week one year ago. The refinance share of mortgage activity increased to 61.9 percent of total applications from 59.5 percent the previous week.
The seasonally adjusted Purchase Index increased by 5 percent from one week earlier. The unadjusted Purchase Index increased by 2 percent compared to the previous week and was 15 percent higher than the same week one year ago.
The FHA share of total applications increased to 13.1 percent from 11.8 percent the week prior. The VA share of total applications increased to 12.7 percent from 12.0 percent the week prior. The USDA share of total applications decreased to 0.5 percent from 0.6 percent the week prior.
“Mortgage applications increased to their highest level in over a month, as both purchase and refinance activity rose despite another climb in mortgage rates,” said MBA Associate Vice President of Economic and Industry Forecasting Joel Kan. “Positive data on consumer sentiment and growing optimism surrounding the U.S. and China trade dispute, were behind last week’s rise in the 30-year fixed mortgage rate to 4.03 percent. Refinance applications jumped 13 percent to the highest level in five weeks, as conventional, FHA and VA refinances all posted weekly gains. With rates still in the 4 percent range, we continue to expect to see moderate growth in refinance activity in the final weeks of 2020.”
Kan said last week was “solid” for homebuyers, with purchase applications up 2 percent from the previous week and 15 percent higher than a year ago. “Low supply and high home prices remain a key characteristic of this fall’s housing market, which is why the largest growth in activity continues to be in loans with higher loan balances,” he said.
MBA reported the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.03 percent from 3.98 percent, with points decreasing to 0.31 from 0.37 (including origination fee) for 80 percent loan-to-value ratio loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 3.98 percent from 3.97 percent, with points decreasing to 0.22 from 0.24 (including origination fee) for 80 percent LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by FHA increased to 3.85 percent from 3.79 percent, with points increasing to 0.28 from 0.21 (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 increased to 3.43 percent from 3.38 percent, with points decreasing to 0.28 from 0.31 (including origination fee) for 80 percent LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 adjustable-rate mortgages decreased to 3.40 percent from 3.43 percent, with points decreasing to 0.17 from 0.21 (including origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The ARM share of activity decreased to 4.9 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.
