The Market Composite Index, a measure of mortgage loan application volume, increased by 4.0% for the week ending in January 20th, 2017, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. (This week’s results include an adjustment for the MLK holiday.)
On an unadjusted basis, the Index decreased by 5% over the same period. The Refinance Index increased by 0.2%. The seasonally-adjusted Purchase Index increased by 6%, while the unadjusted index increased by 2% and is now 0.1% higher than it was during the same week one year ago.
The refinance share of mortgage activity has decreased to 50.0% of all applications, down to its lowest level since July 2015 from 53.0% the previous week. The adjustable-rate mortgage (ARM) share remained unchanged during this period at 5.7%, and the average loan size for purchase applications rose to $309,200. The FHA share of total applications increased to 13.6% from 13.1%, the VA share increased to 12.2% from 12.1%, and the USDA share remained unchanged from 0.9%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) has increased to 4.35% from 4.27%. Points for 80% loan-to-value ratio (LTV) loans have decreased to 0.30 from 0.39. (All 80% LTV loan reports include the origination fee.) For loans with jumbo balances (more than $424,000), average contract interest rates rose to 4.28% from 4.22%, with points decreasing to 0.31 from 0.36 for 80% LTV loans. For loans backed by the FHA, the average contract interest rate increased to 4.19% from 4.10%, with points for 80% LTV loans increasing to 0.35 from 0.28.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.57% from 3.51%, and points for 80% LTV loans decreased to 0.28 from 0.34. Average contract interest rates for 5/1 ARMs decreased to 3.41% from 3.44%, with points increasing to 0.30 from 0.21 for 80% LTV loans.
