The Market Composite Index, a measure of mortgage loan application volume, rose 8.3% on a seasonally adjusted basis and increase 46% on an unadjusted basis. The results include an adjustment for the New Year’s holiday, while results for the previous week were revised.
The survey also found an 11% increase in the Refinance Index. Meanwhile, the Purchase Index increased 5% on a seasonally adjusted basis and rose 44% on an unadjusted basis. Compared to the same week in 2017, the unadjusted Purchase Index declined 1%.
Refinances took the biggest share of overall mortgage activity at 52.9%, an increase from the 52.1% share in the previous period. Adjustable-rate mortgages (ARM) made up 5% of total applications, decreasing from the prior period.
share rose to 11.1% from 10.8%, while the share of VA
applications remained unchanged at 11.4%. USDA applications accounted for 0.7% of overall activity, dipping from 0.8% in the prior week.
Meanwhile, changes in average contract interest rates for various mortgage types were mixed during the period.
Rates for 30-year fixed-rate mortgages with conforming loan balances averaged 4.23%, up from 4.22%, with points, including the origination fee, for 80% loan-to-value ratio loans slipping to 0.35 from 0.37. The average rate for 30-year fixed-rate mortgages with jumbo loan balances rose to 4.16% from 4.14% percent, with points increasing to 0.23 from 0.22. The 30-year fixed-rate mortgage backed by the FHA had an average rate of 4.16%, down from 4.17%, with points rising to 0.42 from 0.40.
The 15-year fixed-rate mortgage had an average 3.66%, up from 3.64%, with points increasing to 0.42 from 0.34. Rates for 5/1 ARMs averaged 3.5%, down from 3.53%, with points decreasing to 0.51 from 0.53.
Refis take biggest share of app activity since January
Refi activity share slips amid app volume decline
Refinances recorded a bigger share of overall mortgage application activity in a week that also saw an increase in application volume, according to the Weekly Mortgage Applications Survey released by the Mortgage Bankers Association for the week ending Jan. 5.