According to the Mortgage Bankers Association Weekly Mortgage Applications Survey for the week ending May 5th, 2017, the nation’s mortgage loan application volume rose by 2.4% on a seasonally-adjusted basis from one week earlier. On an unadjusted basis, the Market Composite Index measure of mortgage loan application volume increased by 3% over the same period.
The Refinance Index increased by 3% over the previous week. The seasonally-adjusted Purchase index increased by 2%, up to its highest level since October 2015, and the unadjusted Purchase Index increased by 2%. The seasonally-adjusted Conventional Purchase Index increased by 2%, up to its highest level since April 2009.
The refinance share of mortgage activity increased to 41.9% of total applications, up from 41.6% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.2% of total applications. The FHA share increased to 10.5%, up from 10.4% the previous week. The VA share remained unchanged at 10.8%, and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged at 4.23%. Points for 80% loan to value ratio (LTV) loans decreased to 0.31 from 0.32. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract interest rate increased to 4.22% from 4.18%, with points for 80% LTV loans increasing to 0.28 from 0.23. The effective rate increased from last week. For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate increased to 4.09 from 4.06%. Points for 80% LTV loans increased to 0.28 from 0.24. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.50% from 3.51%. Points for 80% LTV loans increased to 0.40 from 0.32, and the effective rate increased from last week. The average contract interest rate for 5/1 ARMs increased to 3.36% from 3.29%, and points for 80% LTV loans increased to 0.15 from 0.14. The effective rate increased from last week.
