The Market Composite Index fell 0.7% on a seasonally-adjusted basis over the week ending December 2, 2016, according to the Weekly Mortgage Applications Survey from the Mortgage Bankers ‘Association. On an unadjusted basis, the index increased by 39% over the previous week. (The previous week’s results include an adjustment for the Thanksgiving holiday.)
The Refinance Index decreased 1% from the previous week. The Purchase Index increased 0.4% during the same period, on a seasonally-adjusted basis. Unadjusted, the Purchase index increased 36%, and is 3% higher than the same week one year ago.
The refinance share of mortgage activity increased to 56.2% of all mortgage applications, up from 55.1% the previous week. The adjustable-rate mortgage share increased to 6.0%, and the FHA share of total applications increased to 11.3% from 10.4%. The VA share of applications increased to 12.6% from 11.7%, and the USDA share increased to 0.9% from 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.27%, its highest level since October 2014. Points for 80% loan-to-value (LTV) loans decreased to 0.37 from 0.41. (All 80% LTV loan reports include the origination fee.) The average contract interest rate for 30-year fixed-rate mortgages with jumbo balances ($417,000 or more) has increased to 4.22%, its highest level since September 2014, with points for its 80% LTV loans unchanged at 0.29.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 4.00%, while 80% LTV loan points decreased to 0.38 from 0.44. For 15-year fixed-rate mortgages, average contract interest rates rose to 3.53, the highest level since September 2014, with points rising to 0.39 from 0.33 for 80% LTV loans.
For 5/1 ARMs, the average contract interest rate rose to 3.39%, its highest rate since September 2013. Its 80% LTV loan points decreased to 0.28 from 0.44.
