Mortgage applications increased by 2.3% on a seasonally-adjusted basis during the week ending on February 3rd, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. On an unadjusted basis, the Market Composite Index measure of mortgage loan application volume increased by 6% during this period.
The seasonally-adjusted Purchase Index, increased by 2%, and the unadjusted Purchase Index increased by 9%, 4% higher than the same week one year ago. The Refinance Index increased by 2% as well.
The refinance share of mortgage activity decreased to 47.9% of total applications – its lowest level since June 2009 – from 49.4% the previous week. The adjustable-rate mortgage share increased to 6.9^. The FHA share decreased to 11.9% from 12.1%, the VA share increased to 12.7% from 12.4%, and the USDA share remained unchanged at 0.9%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) decreased to 4.35% from 4.39%. Points for 80% loan-to-value ratio (LTV) loans remained unchanged at 0.34. (All 80% LTV loan reports include the origination fee.) For mortgages of this type with jumbo loan balances (over $424,000) the average contract interest rate decreased to 4.27% from 4.32%, and points for 80% LTV loans decreased to 0.31 from 0.34.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.16%, while points for 80% LTV loans increased to 0.37 from 0.35.
For 15-year fixed rate mortgages, average contract interest rates decreased to 3.55% from 3.61%, and 80% LTV loan points increased to 0.34 from 0.33. For 5/1 ARMs, rates increased to 3.39% from 3.33%, and points for 80% LTV loans decreased to 0.18 from 0.22.
