The Market Composite Index measure of mortgage loan application volume decreased by 2.0% on a seasonally adjusted basis from one week earlier, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending February 17, 2017. On an unadjusted basis, the Index increased by 1% over the same period.
The Refinance Index decreased by 1% from the previous week. The seasonally adjusted Purchase index decreased by 3%, while the unadjusted Purchase index increased by 2%. The Purchase Index is currently 10% higher than it was one year ago.
The refinance share of mortgage activity decreased to 46.2% of total applications, down to the lowest level since November 2008, from 46.9% one week earlier. The adjustable-rate mortgage (ARM) share fell to 7.3%, the FHA share decreased to 11.6%, the VA share increased to 12.1% from 11.8%, and the USDA share fell to 0.9% from 1.0%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36% from 4.32%, with points for 80% loan-to-value ratio (LTV) loans increasing to 0.35 from 0.34. (All 80% LTV loan reports include the origination fee.) For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the rate increased to 4.29% from 4.28%, with points for 80% LTV loans increasing to 0.28 from 0.27. For 30-year fixed rate mortgages backed by the FHA, the rate increased to 4.14% from 4.12%, and points for 80% LTV loans increased to 0.33 from 0.31.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.56% from 3.55%, and points for 80% LTV loans decreased to 0.36 from 0.37. For 5/1 ARMs, the rate decreased to 3.31% from 3.34%, with points increasing to 0.31 from 0.19 for 80% LTV loans.
