Mortgage activity increased during the
week ended February 3, with applications for both purchase and refinance
mortgages pulling in small gains. The
Mortgage Bankers Association's (MBA's) Market Composite Index, a measure of
application volume rose 2.3 percent, on a seasonally adjusted basis, compared
to the week ended January 27 and was 6.0 percent higher before adjustment.
The Refinance Index gained 2 percent compared
to the previous week and the share of mortgage activity decreased from 49.4
percent a week earlier to 47.9. It was
the smallest share of refinancing since June 2009.
The seasonally adjusted Purchase Index added
2 percent from week-earlier levels and was up 9 percent unadjusted. The index was 4 percent higher than during the
same week in 2016.
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
The FHA share of total applications
decreased to 11.9 percent from 12.1 percent the previous week and the VA share
rose to 12.7 percent from 12.4 percent.
The USDA share of total applications was unchanged at 0.9 percent.
In most cases interest rates were slightly
lower than during the prior week. The
average contract interest rate for 30-year fixed-rate mortgages (FRM) with
conforming loan balances ($424,000 or less) decreased to 4.35 percent from 4.39
percent. Points were unchanged at .34
and the effective rate was down.
The contract rate for 30-year FRM with
jumbo loan balances (greater than $424,000) decreased to 4.27 percent from 4.32
percent. Points averaged 0.31, down from
0.34.the previous week and the effective rate dropped as well.
Thirty-year FRM backed by the FHA had an
average rate of 4.16 percent with 0.37 point.
The prior week the rate was 4.16 percent with .35 point. The effective rate was unchanged.
There was a decline of 6 basis points in
the contract interest rate of 15-year FRM, to an average rate of 3.55
percent. Points ticked up to 0.34 from
0.33 but the effective rate was lower than the prior week's average.
Applications for adjustable-rate mortgage
(ARM) increased to their largest share since January 2016, 6.9 percent, from a
6.4 percent share the previous week. The average interest rate for 5/1 ARMs was
also up, averaging 3.39 percent compared to 3.33 percent. Points eased to 0.18 from 0.22 and the
effective rate was higher.
MBA's data is derived from its Weekly
Mortgage Application Survey which covers over 75 percent of all U.S. retail
residential mortgage applications, and has been conducted since 1990.
Respondents include mortgage bankers, commercial banks and thrifts. Base period
and value for all indexes is March 16, 1990=100 and interest rates are based on
loans with an 80 percent loan-to-value ratio and points that include the