Mortgage applications decreased by 6.6% from one week earlier on a seasonally-adjusted basis for the week ending February 16, 2018, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, fell 3% from the previous week. The Refinance index fell 7% over the same period. The seasonally-adjusted Purchase index fell 6%, and the unadjusted Purchase index increased 1% over the previous week.
The refinance share of mortgage activity fell to 44.4% of total applications, down to its lowest level since July 2017, from 46.5% the previous week. The adjustable-rate mortgage (ARM) share of activity rose to 6.4% of total applications. The FHA share of total applications decreased to 9.9% from 10.1%, the VA share of total applications fell to 10.0% from 10.1%, 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) rose to its highest level since January 2014 at 4.64%, up from 4.57% the previous week. Points for 80% loan-to-value ratio (LTV) loans rose to 0.61 from 0.59. (All 80% LTV loan reports include the origination fee.) The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) also rose to its highest rate since January 2014 at 4.62%, up from 4.55%. Points for 80% LTV loans rose to 0.50 from 0.47, and the effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to its highest level since April 2011, 4.58%, from 4.54% the previous week. Points for 80% LTV loans fell to 0.71 from 0.73, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since April 2011 at 4.02%, up from 4.00%. Points for 80% LTV loans rose to 0.66 from 0.65, and the effective rate increased from last week.
The average contract interest rate for 5/1 ARMs fell to 3.72% from 3.74%. Points for 80% LTV loans rose to 0.39 from 0.37, and the effective rate decreased from last week.
