The Market Composite Index, a measure of mortgage loan application volume, decreased by 1.8% on a seasonally adjusted basis from one week earlier for the week ending April 14th, 2017, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey. (This week’s results do not include an adjustment for the Good Friday holiday.) On an unadjusted basis, the Index fell by 2% compared with the previous week.
The Refinance index increased 0.2% over the same period, while the seasonally adjusted and unadjusted Purchase indices decreased by 3%.
The refinance share of mortgage activity increased to 42.4% of total applications, up from 41.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.4% of all applications. The FHA share of total applications increased to 11% from 10.7%, the VA share decreased to 11.1% from 11.3%, and the USDA share remained unchanged at 1.0%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.22% from 4.28%. Points for 80% loan to value ratio (LTV) loans in this category decreased to 0.35 from 0.38, and the effective rate decreased from late week. For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract interest rate decreased to 4.15% from 4.24%, with points for 80% LTV loans decreasing to 0.23 from 0.28. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell to 4.09% from 4.14% during this period. Points for 80% LTV loans increased to 0.36 from 0.29, and the effective rate increased.
For 15-year fixed-rate mortgages, rate decreased to 3.50% from 3.51%. Points for 80% LTV loans increased to 0.41 from 0.35, and the effective rate increased from last week. Average contract interest rates for 5/1 ARMs decreased to 3.27% from 3.33%, while points for 80% LTV loans increased to 0.26 from 0.27. The effective rate decreased from last week.
