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Last updated on February 3rd, 2021 at 11:51 am
According to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey, for the week ending October 16, 2020, U.S. Mortgage applications decreased 0.6 % from the week earlier.
The Market Composite Index, a measure of mortgage loan application volume, decreased 0.6 % on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Index decreased 1 % compared with the earlier week.
The Refinance Index increased 0.2 % from the previous week and was 74 % higher than the same week one year ago.
The seasonally adjusted Purchase Index and the unadjusted Purchase Index both decreased 2 % from one week earlier.
The unadjusted Purchase Index was 26 % higher than the same week one year ago.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said, ”Mortgage rates increased last week, with the 30-year fixed-rate climbing 2 basis points to 3.02 % – the highest since late September.
Despite the uptick in rates, refinance activity held steady, with FHA refinance applications posting a 17.6 % increase, helping to offset declines in the other loan types.
Homebuyer demand remains strong this fall, but purchase applications did decrease 2 %, with both conventional and government purchase activity taking a step back.
Given the ongoing housing market recovery and low rate environment, both purchase and refinance applications remained robust compared to a year ago, rising 26 % and 74%, respectively.”
The refinance share of mortgage activity increased from 65.6 % the previous week to 66.1 % of total applications this week.
The adjustable-rate mortgage (ARM) share of activity decreased to 1.9 % of total applications.
The FHA share of total applications increased from 10.7 % the week prior to 11.8 % this week.
The VA share of total applications decreased from 13.4 % the week prior to 12.6 %. The USDA share of total applications decreased from 0.6 % the week prior to 0.5 %.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased from 3.00 % to 3.02 %, with points increasing to 0.36 from 0.32 (including the origination fee) for 80 % loan-to-value ratio (LTV) loans.
The effective rate increased from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $510,400) increased from 3.30 % to 3.33 %, with points decreasing from 0.35 to 0.30 (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 remained unchanged at 3.12 percent, with points remaining unchanged at 0.35 (including the origination fee) for 80 percent LTV loans.
The effective rate remained unchanged from last week.
The average contract interest rate for 15-year fixed-rate mortgages increased from 2.59 % to 2.61 %, with points decreasing from 0.32 to 0.31 (including the origination fee) for 80 % LTV loans.
The effective rate increased from last week.
The average contract interest rate for 5/1 ARMs increased from 2.63% to 2.86 %, with points remaining unchanged at 0.58 (including the origination fee) for 80 % LTV loans. The effective rate increased from last week.
Reference Source: World Property Journal
