The seasonally adjusted Purchase Index decreased by 2 percent over last week, with the Refinance Index showing an increase of 3% over the previous week’s survey, which posted a considerable uptick from a week earlier.
Last week’s survey showed the Market Composite Index, a measure of mortgage loan application volume, increased 6.3% on a seasonally adjusted basis from the previous week, and 33 percent on an unadjusted basis. The data also showed an increase in both refinance and purchase originations, with the Refinance Index posting a 13 percent increase over the previous week, and the Purchase Index outperforming the past week by a whopping 27%. That increase also reflects a 7% rise from a year prior.
It appears that this week’s slight increase in applications will continue, as rates drop slightly or remain steady. The 30-year fixed mortgage rate decreased from 4.22% the previous week, to 4.17 percent. FHA-backed mortgage rates declined to 4.05% from 4.10 percent a week earlier. Adjustable rate mortgages also fell slightly, with 5/1 ARM rates dropping from 3.32% to 3.29%. Jumbo mortgage loan rates (loans above $424,100) declined from 4.18 percent to 4.06 percent.
Additionally, USDA increased applications from 0.7% to 0.8% from the week prior, with the Department of Veterans Affairs seeing a dip in applications, with 10.5% of all originations specified as VA loans.
The survey data indicates that refinance mortgage activity led the week, making up 46% of total applications, an increase of nearly 2 points over the previous survey. Adjustable-rate mortgages also rose to 6.8% of mortgage applications, as more creative mortgage products enter the marketplace.
The MBA survey covers approximately 75% of consumer residential mortgage applications and is conducted each week. The study compiles data from residential mortgage bankers, commercial banks, and credit unions.