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Last updated on February 3rd, 2021 at 11:01 am
Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey report shows, for the week ending September 4, 2020, U.S. mortgage applications increased 2.9 % compared to last week.
This week’s results are being compared to the week of Labor Day 2019.
Compared to the previous week both the Market Composite Index, a measure of mortgage loan application volume, increased 2.9 % on a seasonally adjusted basis. And on an unadjusted basis, the Index increased by 2%.
The Refinance Index increased 3% from the previous week and was 60% higher than the same week last year. The seasonally adjusted Purchase Index also increased by 3% comparatively.
The unadjusted Purchase Index increased by 0.2% compared with the previous week and was 40% higher than the same week last year.
Joel Kan, MBA‘s Associate Vice President of Economic and Industry Forecasting said, “Mortgage rates declined last week, with a noteworthy 5-basis-point decrease in the 15-year fixed rate to a new record low of 2.62%.
The drop in rates led to a rebound in refinancing activity, driven mainly by borrowers applying for conventional loans, purchase applications were 40% higher than the same week last year, but the increase is skewed higher by being compared to Labor Day 2019.
Nevertheless, there continues to be resiliency in the purchase market.
Applications were up almost 3% on a weekly basis and the average loan size continued to increase, hitting a survey high at $368,600.
Highlighting the strong overall demand for buying a home, conventional, VA, and FHA purchase applications all increased last week.”
The total applications of the refinance share of mortgage activity increased to 63.1% from 62.5% the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 2.2 % of total applications.
The FHA share of total applications remained the same to 10.2 %. The VA share of total applications decreased to 11.2% from 11.4 % the week prior. The USDA share of total applications remained the same as 0.6 %.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) decreased to 3.07 % from 3.08 %, with points remaining unchanged at 0.36 (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 with jumbo loan balances (greater than $510,400) decreased by 0.01% from 3.41 %, with points decreasing to 0.31 from 0.38 (including the origination fee) for 80% LTV loans.
The effective rate decreased from last week.
For 30-year fixed-rate mortgages backed by the FHA, the average contract interest rate decreased from 3.19% to 3.16% with points increasing to 0.42 from 0.34 (including the origination fee) for 80 % LTV loans.
The effective rate decreased from last week.
For 15-year fixed-rate mortgages, the average contract interest rate decreased from 2.67 % to 2.62%. For 80% of LTV loan points decreasing to 0.33 from 0.36 (including the origination fee). The effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs decreased to 2.99% from 3.08%, with points increasing to 0.58 from 0.43 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week.
Reference Source: World Property Journal
