Mortgage applications lower last week

by Steve Randall04 Jan 2018
There was a slowdown in mortgage applications last week as the holidays and weather conspired to dampen demand.

The Mortgage Bankers Association’s survey of mortgage bankers, commercial banks, thrifts and other lenders slipped 2.8% on a seasonally adjusted basis for the week ending December 29, compared with two weeks earlier; on an unadjusted basis there was a 42% drop.

The refinance index was down 7% while the purchase index was up 1% seasonally adjusted, and down 40% on an unadjusted basis. Refinance mortgages increased their share of the market to 52% from 51.8% two weeks earlier. ARMs made up 5.3%.

The shares of FHA (10.4%), VA (11.2%) and USDA (0.8%) loans were all up slightly.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) remained unchanged from the week prior at 4.25%, with points increasing to 0.36 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.

For 30-year FRMs with jumbo loan balances (greater than $424,100) the average contract interest rate decreased to 4.13% from 4.21% with points increasing to 0.21 from 0.20 for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year FRMs backed by the FHA increased to 4.17% from 4.15%, with points increasing to 0.40 from 0.37 for 80% LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year FRMs decreased to 3.65% from 3.66%, with points decreasing to 0.34 from 0.37 for 80% LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs decreased to 3.40% from 3.56%, with points increasing to 0.73 from 0.46 for 80% LTV loans. The effective rate decreased from last week.

More market update:

Poll

Should CFPB have more supervision over credit agencies?