Mortgage applications fell by 2.3% on a seasonally adjusted basis from one week earlier for the week ending August 25, 2017, according to data from 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 by 4% over the previous week. The Refinance Index fell by 2% over the same period. The seasonally-adjusted Purchase index fell 3% from one week earlier, while the unadjusted Purchase index fell 5%.
The refinance share of mortgage activity rose to 49.4% of total applications, up from 48.7% the previous week. The adjustable-rate mortgage (ARM) share rose to 6.9% of total applications. The FHA share of total applications fell to 9.7% from 10.1% the week before. The VA share of total applications fell to 10.0% from 10.2%, and the USDA share fell to 0.7% from 0.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) fell to 4.11% from 4.12%, down to their lowest level since November 2016. Points for 80% loan to value ratio (LTV) loans rose to 0.43 from 0.39, and the effective rate remained unchanged from last week. (All 80% LTV loan reports include the origination fee.)
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased to 4.00% from 3.99%. Points for 80% LTV loans fell to 0.20 from 0.26, and the effective rate decreased from last week.
For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate remained at 4.02%. Points for 80% LTV loans rose to 0.41 from 0.37, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages also fell to its lowest level since November 2016 at 3.36%, down from 3.40%. Points for 80% LTV loans remained unchanged at 0.38, and the effective rate decreased from last week.
For 5/1 ARMs, the average contract interest rate fell to 3.26% from 3.27%. Points for 80% LTV loans rose to 0.35 from 0.31, and the effective rate increased from last week.
