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Mortgage Update - January 22, 2018
January 22nd, 2018 5:17 PM

Post holiday demand in housing and indications of a strong economy led to an increase in mortgage applications last week. The Market Composite Index, a weekly measure of mortgage loan application volume reported by the MBA, increased 4.1 percent on a seasonally adjusted basis from a week earlier. On an unadjusted basis, the index increased 32 percent compared with the previous week.

The Refinance Index increased 4 percent from the previous week. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 35 percent compared with the previous week and was 7 percent higher than the same week one year ago.

The refinance share of mortgage activity decreased to 52.2 percent of total applications from 52.9 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.2 percent of total applications. 

The report included the following highlights:

  • The FHA share of total applications increased to 11.7 percent from 11.1 percent the week prior.
  • The VA share of total applications decreased to 10.7 percent from 11.4 percent the week prior.
  • The USDA share of total applications increased to 0.8 percent from 0.7 percent the week prior.
  • The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.33 percent, from 4.23 percent, its highest level since March 2017.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) increased to 4.25 percent, from 4.16 percent, its highest level since March 2017.
  • The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 4.30 percent, from 4.16 percent its highest level since March 2017.
  • The average contract interest rate for 15-year fixed-rate mortgages increased to 3.77 percent, from 3.66 percent its highest level since January 2014.
  • The average contract interest rate for 5/1 ARMs increased to 3.62 percent, from 3.50 percent, its highest level since April 2011.

 

Posted in:General
Posted by James M. Hanson on January 22nd, 2018 5:17 PMPost a Comment

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