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Last updated on February 3rd, 2021 at 11:20 am
For the week ending September 11, 2020, U.S. mortgage applications decreased by 2.5 % compared to the previous week.
According to the Mortgage Bankers Association Weekly Mortgage Applications Survey, this week’s results include an adjustment for the Labor Day holiday.
The Market Composite Index, a measure of mortgage loan application volume, decreased 2.5% on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Index decreased by 13% compared with the previous week.
There is a decrease of 4% in the Refinance Index from the earlier week, it was 30% higher than the same week last year. The seasonally adjusted Purchase Index decreased 1 % from one week earlier.
The unadjusted Purchase Index decreased by 12% compared with the previous week and was 6% higher than the same week one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, ”Mortgage rates held steady last week, and the 30-year fixed-rate – at 3.07% – has now stayed near the 3% mark for the past two months.
The overall index was pulled lower by a 5% decline in conventional refinances, but activity was still 30% higher than last year.
With the commotion of refinancing activity reported over the past several months, demand may be slowing as remaining borrowers in the market potentially wait for another sizeable drop in rates.
Applications to buy a home also decreased last week, but the underlying trend remains strong.
Purchase activity has outpaced year-ago levels for 17 consecutive weeks, with stronger growth in loans with higher balances pushing MBA’s average loan size to a new survey high of $370,200.”
Of the total applications from 63.1% the previous week, the refinance share of mortgage activity decreased to 62.8%. Of the total applications, the adjustable-rate mortgage (ARM) share of activity increased to 2.3%.
The FHA share of total applications was 10.2% last week and has now decreased to 9.7%. The VA share of total applications increased to 12.3% from 11.2% the week prior.
The USDA share of total applications was 0.6 % the week prior has now decreased to 0.5%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) remained unchanged at 3.07%, with points decreasing to 0.32 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) increased to 3.41% from 3.40%, with points decreasing to 0.27 from 0.31 (including the origination fee) for 80% LTV loans.
The effective rate decreased from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.16%, with points decreasing to 0.35 from 0.42 (including the origination fee) for 80% LTV loans.
The effective rate decreased from last week.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.61% from 2.62%, with points increasing to 0.35 from 0.33 (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 from 2.99 % to 3.20%, with points remaining unchanged at 0.58 (including the origination fee) for 80% LTV loans.
The effective rate increased compared to the previous week.
Reference Source: World Property Journal
