The Market Composite Index, a measure of mortgage loan application volume, dropped by 3.7% on a seasonally-adjusted basis over the course of the week ending February 10, 2017, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. On an unadjusted basis, the Index decreased by 1%.
The Refinance Index decreased by 3% over the same period. The seasonally-adjusted Purchase Index decreased 5%, and the unadjusted Purchase Index increased 1%. It is now 3% higher than it was the same week one year ago.
The refinance share of mortgage activity has decreased to its lowest level since June 2009 at 46.9% of all applications, down from 47.9% the previous week. The adjustable-rate mortgage share increased to 7.5%. The FHA share remained unchanged at 11.9%. The VA share decreased to 11.8% from 12.7%. The USDA share increased to 1.0% from 0.9% the week before.
For 30-year fixed-rate mortgages, the average contract interest rate for mortgages with conforming loan balances ($424,100 or less) decreased to 4.32% from 4.35%. Points for 80% loan-to-value (LTV) loans of this type remained unchanged at 0.34. (All 80% LTV loan reports include the origination fee.) For mortgages with jumbo loan balances, the average contract interest rate ($424,100 or greater) increased to 4.28% from 4.27%, with points for 80% LTV loans decreasing to 0.27 from 0.31. For mortgages backed by the FHA, the average contract interest rate has decreased to 4.12% from 4.16%. Points for 80% LTV loans decreased to 0.31 from 0.37.
The average contract interest rate for 15-year fixed-rate mortgages remained at 3.55%. Points increased to 0.37 from 0.34 for 80% LTV loans. For 5/1 ARMs, the average contract interest rate decreased to 3.34% from 3.39%, and points for 80% LTV loans increased to 0.19 from 0.18.
