Consumers continue to flock to this mortgage segment

With market share on the rise, originators may increasingly set their sights on refi business

Consumers continue to flock to this mortgage segment
With market share on the rise, originators may increasingly set their sights on refi business.

Refinance share of market activity increased to 49% of total applications from 48.7% week-over-week, according to the Mortgage Bankers Association.

“The Market Composite Index, a measure of mortgage loan application volume, remained unchanged on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 1% compared with the previous week,” MBA said in its latest mortgage application survey. “The Refinance Index decreased 1% from the previous week. The seasonally adjusted Purchase Index increased 1% from one week earlier. The unadjusted Purchase Index decreased 2% compared with the previous week and was 9% higher than the same week one year ago.”

Rates, meanwhile, appear to be trending downward – at least according to an admittedly small weekly sample size.

The average 30-year fixed rate on conforming loans decreased to 4.18% from 4.22% last week.

The average 30-year FHA rate fell to 4.05% from 4.07%.

Meanwhile, the average 30-year jumbo fixed rate decreased from 4.22% to 4.18%.

“The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.51 % from 3.52 %, with points remaining unchanged at 0.44 (including the origination fee) for 80 % LTV loans. The effective rate decreased from last week,” MBA said. “The average contract interest rate for 5/1 ARMs remained unchanged from the week prior at 3.33 %, with points increasing to 0.59 from 0.50 (including the origination fee) for 80 % LTV loans. The effective rate increased from last week.”