Mortgage applications increased 4.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 17, 2014. The Market Composite Index, a measure of mortgage loan application volume, increased 4.7 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased seven percent compared with the previous week. The Refinance Index increased 10 percent from the previous week. The seasonally adjusted Purchase Index decreased four percent from one week earlier. The unadjusted Purchase Index increased two percent compared with the previous week and was 15 percent lower than the same week one year ago.
The refinance share of mortgage activity increased to 64 percent of total applications, the highest level in a month, from 62 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to seven percent of total applications.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 4.57 percent, the lowest level since November 2013, from 4.66 percent, with points increasing to 0.36 from 0.33 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.
“The industry has seen an uptick in refinance applications due to the drop in the 10-year Treasury to start the year. However, most economists still believe the refinance market share will remain stagnant or even shrink in the long term. FGMC will maintain the business models that are able to capitalize on a growing refi market, should that happen," said Andrew Peters, CEO of Tysons Corner-based lender First Guaranty Mortgage Corporation (FGMC). "However, we’re focused on investing resources and capital into growing market share across all platforms.”
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) decreased to 4.57 percent, the lowest level since November 2013, from 4.58 percent, with points decreasing to 0.18 from 0.24 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.24 percent, the lowest level since November 2013, from 4.29 percent, with points increasing to 0.23 from 0.17 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.68 percent, the lowest level since December 2013, from 3.72 percent, with points decreasing to 0.29 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 3.23 percent, the lowest level since December 2013, from 3.28 percent, with points decreasing to 0.37 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.
