The Mortgage Bankers Association’s Weekly Mortgage Applications Survey has found that the Market Composite Index, a measure of the volume of mortgage loan applications, increased by 0.9% over the course of the week ending September 2, 2016 on a seasonally adjusted basis. (Unadjusted, the Index decreased by 0.1%.)
During this same period, the Refinance Index increased by 1%. The seasonally adjusted Purchase Index increased by 1%, and decreased by 1% when unadjusted. The refinance share of mortgage activity increased to 64.0%, up from 63.5% the previous week, and the adjustable-rate mortgage share of activity decreased to 4.3%.
FHA’s application share decreased to 9.5% from 9.7%, while VA’s share decreased to 11.9% from 12.5%, and the USDA share remained unchanged at 0.6%.
The average contract interest rate for 30-year fixed-rate mortgages increased to 3.68% from 3.67% for loans with conforming balances ($417,000 or less), and increased to 3.66% from 3.63% for loans with jumbo balances (greater than $417,000). 30-year fixed mortgage loans backed by the FHA saw a decrease in average contact interest rates, which dropped to 3.52% from 3.54%.
For 30-year fixed-rate mortgages that are also 80% loan-to-value ratio (LTV) loans, points for loans with conforming balances increased to 0.37 from 0.33, points for loans with jumbo balances increased to 0.30 from 0.27, and points for loans backed by the FHA decreased to 0.35 from 0.36. (All 80% LTV loan point reports include the origination fee.)
15-year fixed-rate mortgages’ average contact interest rates remained unchanged at 2.96%, with a point increase to 0.34 from 0.31 for 80% LTV loans, and the rate for 5/1 ARMs decreased to 2.87% from 2.90%, with a point increase to 0.30 from 0.24 for 80% LTV loans.