Mortgage applications increased by 5.8% on a seasonally-adjusted basis over the week ending February 24, 2017, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. (This week’s results include an adjustment for the Presidents’ Day holiday.)
On an unadjusted basis, the MBA’s Market Composite Index of mortgage loan application volume decreased 3% from the previous week. The Refinance Index increased 5% over the same period. The seasonally-adjusted Purchase Index increased 7%, and the unadjusted index decreased 1%.
The refinance share of mortgage activity decreased to 45.1% of total applications from 46.2% last week, reaching its lowest level since November 2008. The adjustable-rate mortgage (ARM) share remained unchanged at 7.3%. The FHA share increased to 12.3% from 11.6%, the VA share decreased to 11.7% from 12.1%, and the USDA share remained unchanged at 0.9%.
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.30% from 4.36%. Points for 80% loan-to-value (LTV) loans with conforming loan balances increased to 0.38 from 0.35, and the effective rate decreased from last week. (All 80% LTV loan reports include the origination fee.) For mortgages with jumbo loan balances (greater than $424,100, the average contract interest rate decreased to 4.23% from 4.29%, with points for 80% LTV loans decreasing to 0.25 from 0.28. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.07% from 4.14%, with points for 80% LTV loans increasing to 0.37 from 0.33. The effective rate decreased from last week.
For 15-year fixed-rate mortgages, the average contract interest rate decreased to 3.51% from 3.56%. Points for 80% LTV loans remained unchanged at 0.36, and the effective rate decreased from last week. The average contract interest rate for 5/1 ARMs increased to 3.35% from 3.31%, and points for 80% LTV loans decreased to 0.39 from 0.31. The effective rate increased from last week.
