The Market Composite Index measure of mortgage loan application volume rose 4.4% on a seasonally-adjusted basis for the week ending May 19th, 2017, according to the latest Mortgage Bankers Association (MBA) Weekly Mortgage Applications Survey. On an unadjusted basis, the Index increased by 3% over the previous week.
The Refinance Index increased by 11% over the same period, up to its highest level since March. The seasonally-adjusted Purchase Index fell 1%, and the unadjusted Purchase Index fell by 2%.
The refinance share of mortgage activity increased to 43.9% of total applications, up from a cycle low of 41.1% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.2% of total applications. The FHA share of total applications increased to 10.8% from 10.6% the previous week. The VA share decreased to 10.5% from 10.7% over the same period, and the USDA share of total applications remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.17% from 4.23%, down to its lowest level since November 2016. Points for 80% loan-to-value ratio (LTV) loans increased to 0.39 from 0.37, and the effective rate decreased from last week. (All 80% LTV loan reports include the origination fee.)
For 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100), the average contract interest rate decreased to 4.11% from 4.23%, also to its lowest level since November 2016. Points for 80% LTV loans increased to 0.31 from 0.30, and the effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages also decreased to its lowest level since November 2016 at 3.45%, down from 3.51% last week. Points for 80% LTV loans increased to 0.38 from 0.33, and 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 4.11%, and points for 80% LTV loans decreased to 0.34 from 0.37. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.27% from 3.30%. Points for 80% LTV loans increased to 0.35 from 0.21, and the effective rate increased from last week.
