Total mortgage applications have decreased by 4.0% on a seasonally-adjusted basis over the week ending December 9th, 2016, according to the Mortgage Bankers Association’s Weekly Mortgage Applications.
On an unadjusted basis, the Market Composite Index, a measure of mortgage loan application volume, decreased 5% over this period compared to the previous week.
The Refinance index decreased 4% from the previous week. The seasonally-adjusted Purchase Index decreased by 3%, and the unadjusted Index decreased 7%.
The refinance share of mortgage activity increased to 57.2% of total applications, up from 56.2% the previous week, while the adjustable-rate mortgage (ARM) share rose to 6.2%. The FHA share rose to 11.6% from 11.3% the week before, and the VA share decreased to 11.9% from 12.6%. The USDA share remained unchanged at 0.9%.
The average contract interest rate for 30-year fixed rate mortgages with conforming loan balances ($417,000 or less) rose to 4.28%, its highest level since October 2014, from 4.27%. For 80% loan-to-value (LTV) loans, points decreased to 0.36 from 0.37. (All 80% LTV loan reports include the origination fees.)
For 30-year fixed rate mortgages with jumbo loan balances ($417,000 or more), average contract interest rates also rose to their highest level since October 2014, up to 4.29% from 4.22%. Points for 80% LTV loans decreased to 0.24 from 0.29.
For 30-year fixed rate mortgages backed by the FHA, the average contract interest rate rose to 4.02% from 4.00%, and points for 80% LTV loans decreased to 0.33 from 0.38. Rates for 15-year fixed-rate mortgages decreased to 3.52% from 3.53%, and points for 80% LTV loans in this category fell to 0.38 from 0.39.
The average contract interest rate for 5/1 ARMS decreased to 3.28% from 3.39%, while its 80% LTV loan points remained at 0.28.
