Total mortgage applications increased by 0.6% on a seasonally-adjusted basis for the week ending October 14, 2016, a small recovery from the 6% decrease one week before, according to the Mortgage Bankers Association’s Weekly Mortgage Application Survey. Unadjusted, the Market Composite Index decreased by 9%. (This week’s survey includes an adjustment for the Columbus Day holiday.)
The Refinance Index has decreased by 1%, again to its lowest level since June. The seasonally-adjusted Purchase Index increased by 3%, and the unadjusted Purchase Index decreased by 7%, though it is still 13% higher than it was the same week in 2015.
The refinance share of mortgage activity has decreased to 61.5% of total applications. The ARM share remains unchanged at 4.1%, the FHA share has increased to 11.3%, the VA share has increased to 12.8%, and the USDA share remains unchanged at 0.7%.
For 30-year fixed rate mortgages with conforming loan balances ($417,000 or less), the average contract interest rate increased to 3.73%, its highest level since June of this year. The average contract interest rate for 30-year fixed rate mortgages with jumbo loan balances (more than $417,000), also increased, rising to 3.72%. For 30-year loans backed by the FHA, the average contract interest rate remained at 3.54%.
For 30-year fixed-rate 80% LTV (loan-to-value) loans, points for mortgages with conforming balances increased to 0.36 from 0.35, and points for mortgages with jumbo balances rose to 0.29 from 0.24. Points for loans backed by the FHA increased to 0.30 from 0.23. (All point reports include the origination fee.)
For 15-year fixed rate mortgages, the average contract interest rate increased to 3.03%, and the average contract interest rate for 5/1 ARMs increased to 2.97%, its highest rate since May of this year. Points for 15-year fixed-rate mortgages that are also 80% LTV loans fell to 0.27 from 0.34, and points for 5/1 ARMs that are also 80% LTV loans increased to 0.41 from 0.28.
