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Mortgage Apps Move Upwards

Stable mortgage rates and an uptick in home listings is pushing mortgage loan applications. According to the latest weekly Mortgage Applications Survey released by the MBA, mortgage loan applications increased 2.5 percent from a week earlier. On an unadjusted basis, however, the Market Composite Index decreased 18 percent compared to the previous week.

Mortgage loan applications had shown a decline over the past two weeks and last week, apps declined despite a decrease in mortgage interest rates [1].

The seasonally adjusted purchase index also saw a rise, increasing 7 percent from the prior week. The refinance index, on the other hand, decreased to its lowest level since December 2000 to 4 percent. In fact, the refinance share of mortgage activity also fell to its lowest level since August 2008 to 34.8 percent of total applications. The refinance share of mortgage activity in the previous week was slightly higher at 37.2 percent. The survey found that the adjustable-rate mortgage (ARM) share of activity decreased to 6.3 percent of total applications.

Loan applications for FHA loans saw a slight dip from 10.2 percent in the prior week to 10 percent. The VA loans, though, saw a rise to 11.3 percent from 10.7 percent in the previous week. The USDA share of loan applications remained unchanged at 0.8 percent.

Here's how the average contract interest rate for various loan types performed in the last week: