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Mortgage loan applications increased this week, according to the Mortgage Banker’s Association’s (MBA) Weekly Mortgage Applications Survey released Wednesday.
The Market Composite Index, which measures loan application volume, increased 0.6 percent on a seasonally adjusted basis compared to last week, ending June 16, 2017. Unadjusted, the Index decreased 0.4 percent. The Refinance Index increased by 2 percentage points bringing it to its highest level since November 2016. The seasonally adjusted Purchase Index decreased 1 percent from last week and 2 percent on an unadjusted basis.
At 46.6 percent of total applications, refinance shares of mortgage activity increased from 45.4 percent last week. Adjustable Rate Mortgages (ARM) increased to 7.5 percent of total applications.
The FHA share of total applications decreased from 11.2 percent last week to 10.1 percent this week. The VA total share decreased to 10.4 percent from 11.1 percent. Total applications from USDA decreased to 0.7 percent from 0.8 percent the week prior.
30-year fixed-rate mortgages with conforming loan balances, which are $424,100 or less, remained unchanged at 4.13 percent, with points decreasing to 0.34 from 0.35, including the origination fee, for 80 percent LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.40 percent from 3.37 percent, with points increasing to 0.38 from 0.34, including the origination fee, for 80 percent LTV loans, according to MBA.
Contract interest rates for 5/1 ARMs remained unchanged at 3.26 percent, with points increasing to 0.22 from 0.20 for 80 percent LTV loans. The effective rate for 5/1 ARMs, 30-year fixed-rate mortgages, and 30-year fixed-rate mortgages increased from the week prior.
MBA’s survey covers over 75 percent of all U.S. retail residential mortgage applications and has been conducted weekly since 1980. Mortgage bankers, commercial banks, and thrifts are included in the respondents.
