Mortgage Applications Jump Over 11 Percent In Last Week Of August

Dated: September 2 2015

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Mortgage applications increased 11.3% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 28, 2015.


This follows several weeks of shrinkage, flat or very tepid gains through July and much of August.


The Market Composite Index, a measure of mortgage loan application volume, increased 11.3% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 10% compared with the previous week.


The Refinance Index increased 17% from the previous week to its highest level since April 2015. The seasonally adjusted Purchase Index increased 4% from one week earlier to its highest level since July 2015. The unadjusted Purchase Index increased 2% compared with the previous week and was 25% higher than the same week one year ago.


“Although mortgage rates were unchanged for the week, Treasury rates were down sharply early in the week due to the global stock market rout and this led to a significant increase in application volume,” said Mike Fratantoni, MBA’s Chief Economist.


The refinance share of mortgage activity increased to 58.7% of total applications from 55.3% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.5% of total applications.


The FHA share of total applications decreased to 12.7% from 13.1% the week prior. The VA share of total applications decreased to 9.8% from 11.4% the week prior. The USDA share of total applications decreased to 0.7% from 0.8% the week prior.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) remained unchanged at 4.08%, with points increasing to 0.37 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.


The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to 4.05% from 4.00%, with points increasing to 0.28 from 0.24 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.


The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.87% from 3.90%, with points increasing to 0.32 from 0.21 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.


The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.30% from 3.33%, with points decreasing to 0.26 from 0.31 (including the origination fee) for 80% LTV loans.


The effective rate decreased from last week.


The average contract interest rate for 5/1 ARMs increased to 3.05% from 2.96%, with points unchanged at 0.36 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.


Source

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Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 30 years in the industry, Mark has gained experience in ....

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