The Market Composite Index, a measure of mortgage loan application volume, increased by 3.3% on a seasonally-adjusted basis from one week earlier for the week ending March 3rd, 2017, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. (The previous week’s results included an adjustment for the President’s Day holiday.)
Mortgage applications increased by 16% on an un-adjusted basis over the previous week. The Refinance index increased by 5%, up to the highest level since December 2016. The seasonally-adjusted Purchase index increased by 2%, while the unadjusted Purchase index increased 15%.
The refinance share of mortgage activity increased to 45.4% of total applications during this period, up from 45.1% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.7% of total applications, the FHA share fell to 11.8% from 12.3%, the VA share fell to 11.6% from 11.7%, and the USDA share remained unchanged at 0.9%. The average loan size for purchase applications reached a survey high of $313,300.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.36% from 4.30%. Points for 80% loan-to-value ratio (LTV) loans increased to 0.44 from 0.38. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
For 30-year fixed-rate mortgages with jumbo loan balances (over $424,100), rates increased to 4.27% from 4.23%. Points for 80% LTV loans increased to 0.26 from 0.25. The effective rate increased over last week. For 30-year fixed-rate mortgages backed by the FHA, rates increased to 4.18% from 4.07%, and points for 80% LTV loans decreased to 0.32 from 0.37. The effective rate increased.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.57% from 3.51%. Points remained at 0.36 for 80% LTV loans, and the effective rate increased from last week. For 5/1 ARMs, the average rate increased to 3.48% from 3.35%. Points for 80% LTV loans decreased to 0.20 from 0.29, and the effective rate increased.
