Home >> Daily Dose >> Mortgage Applications Reach Highest Level Since January
Print This Post Print This Post

Mortgage Applications Reach Highest Level Since January

Mortgage applications grew nearly 10 percent from last week, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. On an adjusted basis the index increased 9 percent compared to the previous week.

“Purchase application volume picked up for the week and on a seasonally adjusted basis reached its highest level since January 30, 2015, and continues to run about 3 percent ahead of last year’s pace,” MBA Chief Economist Mike Frantantoni said. “Low mortgage rates and more importantly continued improvements in the job market are the likely drivers behind this increase.”

Refinances increased 12 percent from the previous week.  The seasonally adjusted Purchase Index increased 5 percent from one week earlier to its highest level since January 2015. The refinance share of mortgage activity increased to 61 percent of total applications from 59 percent the previous week.  The adjustable-rate mortgage (ARM) share of activity increased to 5.8 percent of total applications. The FHA share of total applications decreased to 13.3 percent this week from 14.3 percent last week.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.90 percent, its lowest level since February 2015, from 3.99 percent, with points decreasing to 0.37 from  0.40 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 3.89 percent, its lowest level since January 2015,  from 3.94 percent, with points decreasing to 0.25 from 0.33 (including the origination fee) for 80 percent LTV loans.  The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.71 percent, its lowest level since January 2015, from 3.74 percent, with points increasing to 0.21 from 0.12 (including the origination fee) for 80 percent LTV loans.  The effective rate remained unchanged from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.22 percent, its lowest level since February 2015, from 3.28 percent, with points decreasing to 0.28 from 0.34 (including the origination fee) for 80 percent LTV loans.

 

About Author: Samantha Guzman

Samantha Guzman is an award-winning visual journalist and graduate of the University of North Texas Mayborn School of Journalism. She specializes in visual storytelling and has skills in video, audio and photography, in addition to news writing. She has traveled to Mexico and Bosnia as an assistant for multiple multimedia projects and taught news writing, photojournalism, and narrative storytelling in the past.
x

Check Also

Survey: Homeownership Remains Elusive for Baby Boomer Renters

A recent look into housing affordability by NeighborWorks America has found that three in five long-term baby boomer renters feel homeownership remains unattainable.