On a seasonally-adjusted basis, the Market Composite Index measure of mortgage applications increased by 0.8% during the week ending January 13th, 2017. (The previous week’s results include an adjustment for the New Year’s holiday.) On an unadjusted basis, the Index increased by 29%.
The Refinance Index increased by 7% from the previous week. On an adjusted basis, the Purchase Index decreased 5% during this period and increased 25% on an unadjusted basis.
The refinance share of mortgage activity increased to 53.0% of total applications, up from 51.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7% during the same period. The FHA share of total applications increased to 13.1% from 11.7%, the VA share of total applications decreased to 12.1% from 12.8%, and the USDA share remained unchanged at 0.9%.
For 30-year fixed-rate mortgages, the average contract interest rate for loans with conforming balances ($424,000 or less) decreased to 4.27% from 4.32%. Points for 80% loan-to-value (LTV) loans decreased to 0.39 from 0.41. (All 80% LTV ratio reports include the origination fee.) The average contract interest rate for loans with jumbo balances (greater than $424,000) decreased to 4.22% from 4.27%, with points for 80% LTV loans increasing to 0.36 from 0.31.
For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate increased to 4.10% from 4.08%. Points decreased to 0.28 from 0.35 for 80% LTV loans in this category. For 15-year fixed-rate mortgages, the average contract interest rate fell to 3.51% from 2.56%, with points decreasing to 0.34 from 0.42 for 80% LTV loans.
The average contract interest rate for 5/1 ARMs has increased to 3.44% from 3.32%. Points for 80% LTV loans decreased to 0.21 from 0.46.
