Applications for both purchase and
refinance mortgages declined during the week ended February 10 compared to
activity a week earlier. The Mortgage
Bankers Association said its Market Composite Index, a measure of applications
volume, was down 3.7 percent on a seasonally adjusted basis compared to the
week ended February 3 and was 1 percent lower unadjusted.
The share of refinancing slipped by 1
percentage point, the fourth consecutive week it has fallen, reaching 46.9
percent of all mortgage applications, the lowest share since June 2009. The Refinance Index decreased 3 percent from
the previous week.
The seasonally adjusted Purchase Index
fell by 5 percent on a seasonally adjusted basis but remained 1 percent higher
than the week before when unadjusted and 3 percent higher than the same week in
Refi Index vs 30yr Fixed
Purchase Index vs 30yr Fixed
The FHA share of total applications was unchanged
from the prior week at 11.9 percent. The
VA share fell to 11.8 percent from 12.7 percent and the USDA share inched up to
1.0 percent from 0.9 percent.
Both contract and effective interest rates
were mixed. The average contract rate
for 30-year fixed-rate mortgages (FRM) with conforming loan balances ($424,100
or less) decreased to 4.32 percent from 4.35 percent. Points were unchanged 0.34 and the effective
The average rate for 30-year FRM with
jumbo loan balances (greater than $424,100) was 4.28 percent, a 1 basis point
increase from the week before. Points
dropped to 0.27 from 0.31 and the effective rate was unchanged.
FHA- backed 30-year FRM had an average
rate of 4.12 percent with 0.31 point.
The previous week the rate was 4.16 percent with 0.37 point. The effective rate was also down.
The average contract interest rate for
15-year FRM remained unchanged at 3.55 percent, with points increasing to 0.37
from 0.34. The effective rate was also
The share of adjustable rate mortgages
(ARMs) rose from 6.9 percent to 7.5 percent, the highest share of activity for
ARMs since October 2015. The average interest
rate for 5/1 ARMs decreased to 3.34 percent from 3.39 percent, and points
increased to 0.19 from 0.18. The effective rate was also lower than the prior
MBA's Weekly Mortgage Applications Survey 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 rate data is based on mortgages with an 80 percent loan-to-value
ratio and points that include the origination fee.