Mortgage applications rose by 2.7% on a seasonally-adjusted basis for the week ending February 23rd, 2018, over the previous week, according to the Mortgage Bankers Association (MBA)’s latest Weekly Mortgage Applications Survey. (This week’s results include an adjustment for the Presidents’ Day holiday.)
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 6% from the previous week. The Refinance Index fell 1% over the same period. The seasonally-adjusted Purchase index rose 6% from one week earlier, and the unadjusted Purchase index fell 1%.
The refinance share of mortgage activity fell to 41.8% of total applications, down from 44.4% the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 6.7% of total applications. The FHA share of applications rose to 10.3% from 9.9%, the VA share rose to 10.7% from 10.0%, and the USDA share remained unchanged at 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from last week at 4.64%. Points for 80% loan-to-value ratio (LTV) loans rose to 0.63 from 0.61. (All 80% LTV loan reports include the origination fee.) The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) fell to 4.57% from 4.62%. Points for 80% LTV loans rose to 0.51 from 0.50, and the effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.68% from 4.58%, up to its highest level since April 2011. Points for 80% LTV loans rose to 0.75 from 0.71, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages also rose to its highest level since April 2011, 4.07%, up from 4.02% the previous week. Points for 80% LTV loans fell to 0.59 from 0.66, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs rose to 3.85% from 3.72%, up to its highest level since February 2011. Points for 80% LTV loans rose to 0.59 from 0.39, and the effective rate increased from last week.
