Mortgage applications rose 2.7% on a seasonally-adjusted basis over the week ending April 21, 2017, according to the Mortgage Bankers Association’s Weekly Mortgage Application Survey. On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, rose 3% compared with the previous week.
The Refinance index increased 7% over the same period. The seasonally-adjusted Purchase index decreased 1%, and the unadjusted Purchase index increased 0.1%.
The refinance share of mortgage activity increased to 44% of all applications, up from 42.4% the previous week, and the average size of a refinance application increased to $266,900, its highest level since September 2016. The adjustable-rate mortgage (ARM) share rose to 8.7 % of all applications. The FHA share decreased to 10.0% from 11.0%, the VA share decreased to 10.9% from 11.1%, and the USDA share decreased to 0.8% from 1.0%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or lower) fell to 4.20% from 4.22%, down to its lowest level since November 2016. Points for 80% loan-to-value (LTV) loans increased to 0.37 from 0.35. (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 (higher than $424,100), interest rates remained unchanged at 4.15%. Points for 80% LTV loans increased to 0.27, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.03% from 4.09%, and points for 80% LTV loans decreased to 0.34. The average contract interest rate for 15-year fixed-rate mortgages fell to 3.46% from 2.50%, and points for 80% LTV loans rose to 0.50 from 0.41. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.22% from 3.27%, with points for 80% LTV loans decreasing to 0.18 from 0.26. The effective rate decreased from last week.
