The Market Composite Index, a measure of mortgage loan application volume, decreased by 0.8% on a seasonally adjusted basis for the week ending March 24, 2017, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey.
On an unadjusted basis, the Market Composite Index fell by 0.4% compared to the previous week. The Refinance index decreased by 3% over the same period. The seasonally adjusted Purchase Index increased by 1%, while the unadjusted Purchase Index increased 2%.
The refinance share of mortgage activity decreased to its lowest level since October 2008, at 44.0% of all mortgage applications. The adjustable-rate mortgage (ARM) share of activity decreased to 8.5% of all applications. The FHA share decreased to 10.8% from 10.9%, the VA share increased to 11.0% from 10.1%, and the USDA share increased to 1.0% from 0.9%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) decreased to 4.33% from 4.46%. Points for 80% loan-to-value ratio (LTV) loans increased to 0.43 from 0.41. (All 80% LTV loan reports include the origination fee.) The effective rate decreased from last week.
For 30-year fixed-rate mortgages with jumbo loan balances (over $424,100), the average contract interest rate decreased to 4.26% from 4.40%. Points decreased to 0.26 from 0.37 for 80% LTV loans, and the effective rate decreased from last week. Rates for 30-year fixed-rate mortgages backed by the FHA decreased to 4.24% from 4.33%, with points for 80% LTV loans decreasing from 0.36 to 0.40. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.57% from 3.68%. Points for 80% LTV loans increased to 0.43 from 0.37, and the effective rate decreased from last week. For 5/1 arms, rates decreased to 3.30% from 3.41%, and points for 80% LTV loans increased to 0.28 from 0.25. The effective rate decreased from last week.
