For the week ending on January 27, 2017, the Market Composite Index measure of mortgage loan application volume decreased by 3.2%, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. On an unadjusted basis, the Index increased by 11% over the previous week. (The previous week’s results include an adjustment for the Martin Luther King Day holiday.)
The Refinance Index decreased 1% from the previous week, while the Purchase Index decreased 6% on a seasonally-adjusted basis and increased 12% on an unadjusted basis.
The refinance share of mortgage activity decreased to 49.4% of total applications, down from 50.0% the previous week. The adjustable-rate mortgage (ARM) share increased to 6.4%. The FHA share decreased to 12.1% from 13.6%. The VA share increased to 12.4% from 12.2%, and the USDA share remained unchanged at 0.9%.
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($424,000 or less) increased to 4.39% from 4.35%, with points for 80% loan-to-value ratio (LTV) loans rising to 0.34 from 0.30. (All point reports include the origination fee.)
For 30-year fixed-rate mortgages with jumbo loan balances (more than $424,000), the average contract interest rate increased to 4.32% from 4.28%, with points increasing to 0.34 from 0.31 for 80% LTV loans. For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate has decreased to 4.17% from 4.19%, while points remain unchanged at 0.35.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.61% from 3.57%, with points for 80% LTV loans increasing to 0.33 from 0.28. The average contract interest rate for 5/1 ARMs decreased to 3.33% from 3.41%, with points for 80% LTV loans decreasing to 0.22 from 0.30.
