The year began on a positive note for the mortgage loan industry, with mortgage applications increasing from the week earlier, according to MBA’s Weekly Mortgage Applications Survey for the week ending January 5, 2018.
The survey indicated that The Market Composite Index, a measure of mortgage loan application volume, increased 8.3 percent on a seasonally adjusted basis from the earlier week. On an unadjusted basis, the Index increased 46 percent compared with the previous week.
The seasonally adjusted Purchase Index increased 5 percent from the earlier week. The unadjusted Purchase Index increased 44 percent compared with the previous week and was 1 percent lower than the same week one year ago.
While the Refinance Index increased 11 percent from the previous week, the refinance share of mortgage activity increased to 52.9 percent of total applications up from 52.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 5.0 percent of total applications.
Other weekly indicators reported by the survey are as follows:
- FHA share of total applications increased to 11.1 percent from 10.8 percent the week prior.
- VA share of total applications remained unchanged from the week prior at 11.4 percent.
- USDA share of total applications decreased to 0.7 percent from 0.8 percent the week prior.
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.23 percent from 4.22 percent. The effective rate remained unchanged from last week.
- The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to 4.16 percent from 4.14 percent. The effective rate increased from last week.
- The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.16 percent from 4.17 percent. The effective rate decreased from last week.
- The average contract interest rate for 15-year fixed-rate mortgages increased to 3.66 percent from 3.64 percent. The effective rate increased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 3.50 percent from 3.53 percent. The effective rate decreased from last week.