The Market Composite Index, a weekly measure of mortgage loan application volume, decreased 1.6% on a seasonally adjusted basis over the week ending March 31, 2017, according to the Mortgage Bankers Association’s Weekly Survey. On an unadjusted basis, the Index decreased by 1% over the same period.
The Refinance Index decreased by 4% from the previous week. The Purchase Index increased by 1% on adjusted and un-adjusted terms alike.
The refinance share of mortgage activity decreased to 42.6% of total applications, down from 44.0% the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 8.5%. The average loan size for purchase applications reached a survey high at $318,200.
The FHA share increased to 11.0% from 10.8% the previous week. The VA share increased to 11.1% from 11.0%, and the USDA share remains unchanged at 1.0%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) increased to 4.34% from 4.33%. Points for 80% loan-to-value (LTV) loans decreased to 0.31 from 0.43. (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 ($424,100 or more), the average contract interest rate increased to 4.34% from 4.33%, with points decreasing to 0.24 from 0.26 for 80% LTV loans. The effective rate decreased from last week.
Rates for 30-year fixed-rate mortgages backed by the FHA decreased to 4.15% from 4.24%, with points decreasing to 0.32 from 0.36 for 80% LTV loans. Rates for 15-year fixed rate mortgages remained unchanged at 3.57%, and 80% LTV loan points decreased to 0.38 from 0.43. Both mortgages’ effective rates decreased from last week.
The average contract interest rate for 5/1 ARMs increased to 3.33% from 3.30%. Points for 80% LTV loans decreased to 0.13 from 0.28 for 80% LTV loans, and the effective rate decreased from last week.
