Mortgage applications increased 9.6% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending November 8, 2019.
The Market Composite Index, a measure of mortgage loan application volume, increased 9.6% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 9% compared with the previous week. The Refinance Index increased 13% from the previous week and was 188% higher than the same week one year ago. The seasonally adjusted Purchase Index increased 5% from one week earlier. The unadjusted Purchase Index increased 2% compared with the previous week and was 15% higher than the same week one year ago.
“Mortgage applications increased to their highest level in over a month, as both purchase and refinance activity rose despite another climb in mortgage rates. Positive data on consumer sentiment, and growing optimism surrounding the U.S. and China trade dispute, were behind last week’s rise in the 30-year fixed mortgage rate to 4.03%,” said Joel Kan, Associate Vice President of Economic and Industry Forecasting. “Refinance applications jumped 13% to the highest level in five weeks, as conventional, FHA, and VA refinances all posted weekly gains. With rates still in the 4% range, we continue to expect to see moderate growth in refinance activity in the final weeks of 2020.”
Added Kan, “Last week was a solid week for homebuyers. Purchase applications increased 2% and were 15% higher than a year ago. Low supply and high home prices remain a key characteristic of this fall’s housing market, which is why the largest growth in activity continues to be in loans with higher loan balances.”
The refinance share of mortgage activity increased to 61.9% of total applications from 59.5% the previous week. The adjustable-rate mortgage share of activity decreased to 4.9% of total applications.
The FHA share of total applications increased to 13.1% from 11.8% the week prior. The VA share of total applications increased to 12.7% from 12.0% the week prior. The USDA share of total applications decreased to 0.5% from 0.6% the week prior.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) increased to 4.03% from 3.98%, with points decreasing to 0.31 from 0.37 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) increased to 3.98% from 3.97%, with points decreasing to 0.22 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.85% from 3.79%, with points increasing to 0.28 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.43% from 3.38%, with points decreasing to 0.28 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.40% from 3.43%, with points decreasing to 0.17 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
