Mortgage applications rise as refinances bounce back

by Steve Randall07 Sep 2017
Refinance loans took a 50.9% share of all new mortgage applications last week, their highest share since January.

Overall, mortgage applications gained 3.3% on a seasonally adjusted basis according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey.

On an unadjusted basis, the index gained 2.0% in the week ending September 1 compared to the previous week.

The Refinance Index saw a 5% rise while the Purchase Index was up 1% from a week earlier (both adjusted and unadjusted) and up 5% from a year earlier (unadjusted).

ARMs made up 7.2% of total mortgage applications. The share of FHAs dipped to 9.6% (from 9.7% a week earlier) while VAs dropped to 9.7% (from 10%) and USDAs took an unchanged 0.7% share.

Average rates for conforming (4.06%), Jumbo (3.96%), FHA (3.98%) 30-year FRMs; and for 15-year FRMs (3.34%) and 5/1 ARMs (3.14%); fell to their lowest since November 2016.

The MBA survey covers 75% of all US residential mortgage applications and includes data from mortgage bankers, commercial banks and thrifts.

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