Mortgage Applications Jump Over 11 Percent In Last Week Of August

Dated: September 2 2015

Views: 490

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

Blog author image

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 25+ years in the industry, Mark has gained experience in....

Latest Blog Posts

Mortgage Underwriting Challenges In The Pandemic

In December, AmTrust Title Insurance Company announced the hiring of seasoned underwriter Mary Shelley as its midwest region agency underwriter. We took the opportunity to talk to Shelley, who has

Read More

How Bidens Stimulus Plan Impacts Housing

President-elect Joe Biden’s $1.9 trillion stimulus, unveiled Thursday as the American Rescue Plan, includes a call for extending the national moratorium on evictions and foreclosures until Sept.,

Read More

Will We Have A Buyers Housing Market In 2021

If you’re looking to buy a home, you’ll stand the best chance in a buyer’s housing market, where listings are flush, demand is low and buyers have the upper hand — not to mention most of the

Read More

What To Budget For Closing Costs When Buying A House

Are you considering purchasing a home for the first time? Then you’re probably already saving money for your down payment. But what about all the other costs needed to complete the transaction?

Read More