The Market Composite Index, a measure of loan application volume had its
first positive week since June 6 last week, increasing 2.4 percent on a
seasonally adjusted basis from the previous week. The Mortgage Bankers Association (MBA) said
its unadjusted volume index also finished the week ended July 18 with an
increase, up 3 percent. All other weekly
indicators also rose, the first time that has happened since January 10.
MBA's Refinance Index increased 4 percent from the previous week and applications
for refinancing edged up to a 54.4 percent share from 53.6 percent the previous
week, and the highest share of the market since the week ended March.
Refinance Index vs 30 Yr Fixed
Applications for purchase mortgages were marginally higher; the
seasonally adjusted Purchase Index by 0.3 percent and the unadjusted Purchase
Index by 1.0 percent. The unadjusted Purchase Index was 16 percent lower than
during the same week in 2013, the sole indicator that retreated.
Purchase Index vs 30 Yr Fixed
Rates were mixed and largely flat.
The average contract rate for a 30-year fixed rate mortgage (FRM) with a
conforming balance of $417,000 or less was unchanged at 4.33 percent with
points rising to 0.23 from 0.20. The
effective rate was unchanged.
The jumbo version of the 30-year FRM had an average rate of 4.21 percent,
down 2 basis points from the previous week and the lowest rate since May
2013. Points decreased to 0.20 from 0.26
and the effective rate declined.
The average contract
interest rate for 30-year
FRM backed by the FHA slipped
to 4.03 percent
from 4.04 percent.
Points increased to 0.15 from 0.02. The effective rate increased from last week.
significant rate change of the week was an increase in the contract rate of the
15-year FRM from 3.41 percent with 0.23 point to 3.47 percent with 0.28
point. The effective rate also
The average contract
interest rate for 5/1 adjustable rate mortgages (ARMs) increased
to 3.21 percent from 3.17 percent, with points decreasing to 0.32 from 0.34. The effective rate increased from last week. ARMs continued to have an 8 percent share of
collects application and mortgage rate information from a Weekly Mortgage
Application Survey which it has conducted since 1990. Respondents include mortgage bankers,
commercial banks, and thrifts. The
survey covers over 75 percent of U.S. retail residential mortgage
applications. Base period and value for all indexes is March 16, 1990=100
and rate information assumes that loans have an 80 percent loan-to-value ratio
and points include the origination fee.