According to the Mortgage Banker Association’s Weekly Mortgage Applications Survey, mortgage applications decreased by 4.1% on a seasonally-adjusted basis from one week earlier for the week ending May 12, 2017. On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell by 4% over the same period.
The Refinance index decreased by 6% from one week earlier. The seasonally-adjusted Purchase index fell by 3% over the same period, and the unadjusted Purchase index decreased by 3%.
The refinance share of total mortgage activity decreased to 41.1%, down to the lowest level since September 2008, from 41.9% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 8.1%, and the average loan size for purchase applications reached a survey high at $322,300.
The FHA share of mortgage applications increased to 10.6% from 10.5%, and the VA share of total applications decreased to 10.7% from 10.8%. The USDA share of total applications remained at 0.8% from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged this week at 4.23%. Points for 80% loan-to-value ratio (LTV) loans increased to 0.37 from 0.31, and the effective rate increased from last week. (All 80% LTV loan reports include the origination fee.)
For 30-year fixed-rate mortgages with jumbo loan balances ($424,100 or higher), the average contract interest rate increased to 4.23% from 4.22%. Points for 80% LTV loans increased to 0.30 from 0.28, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.11% from 4.09%, with points increasing to 0.37 from 0.28 for 80% LTV loans. The effective rate increased from last week.
For 15-year fixed-rate mortgages, the average contract interest rate increased to 3.51% from 3.50%. Points for 80% LTV loans decreased to 0.33 from 0.40, and the effective rate decreased from last week.
The average contract interest rate from 5/1 ARMs decreased to 3.30% from 3.36%. Points for 80% LTV loans increased to 0.21 from 0.15, and the effective rate decreased from last week.
