Mortgage applications fell by 1.8% on a seasonally-adjusted basis from one week earlier for the week ending September 7th, 2018, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. This week’s results are adjusted for the Labor Day holiday.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 13% from the previous week. The Refinance Index fell 6% over the same period, down to its lowest level since December 2000. The seasonally-adjusted Purchase Index rose 1%, and the unadjusted index fell 11%.
The refinance share of mortgage activity fell to 37.8% of all applications, down from 38.9% the previous week. The adjustable-rate mortgage (ARM) share rose to 6.4% of total applications. The FHA share rose to 10.4% from 10.2%, the VA share rose to 10.5% from 10.0%, and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) rose to 4.84% from 4.80%. Points for 80% loan to value ratio (LTV) loans rose to 0.46 from 0.43. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) rose to 4.72% from 4.67%. Points for 80% LTV loans rose to 0.47 from 0.30, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.84% from 4.79%. Points for 80% LTV loans fell to 0.51 from 0.69, and the effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages rose to 4.28% from 4.23%. Points for 80% LTV loans rose to 0.47 from 0.45, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs fell to 4.07% from 4.09%. Points for 80% LTV loans fell to 0.30 from 0.31, and the effective rate decreased from last week.
