The Market Composite Index, a measure of mortgage loan application volume, fell by 3.0% on a seasonally-adjusted basis from one week earlier for the week ending August 3rd, 2018, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey. This week marks the Index’s lowest level since January 2016.
The Index also fell by 3.0% on an unadjusted basis. The Refinance Index fell by 5% over the same period, down to its lowest level since December 2000, and both the seasonally-adjusted and the unadjusted Purchase Index fell by 2%.
The refinance share of mortgage activity fell to 36.6% of total applications, down from 37.1% the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 6.3% of total applications. The FHA share remained unchanged at 10.4%, the VA share rose to 10.6% from 10.5%, 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 at 4.84%. Points for 80% loan-to-value ratio (LTV) loans remained unchanged at 0.45. (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 4.74% from 4.76%. Points for 80% LTV loans rose to 0.39 from 0.37, and the effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.83% from 4.78%. Points for 80% LTV loans rose to 0.76 from 0.74, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.26% from 4.29%. Points for 80% LTV loans fell to 0.48 from 0.53, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 4.07% from 4.17%. Points for 80% LTV loans rose to 0.42 from 0.32, and the effective rate decreased from last week.
