US MORTGAGE APPLICATIONS SPIKE 25 PERCENT IN ONE WEEK

Dated: 10/11/2015

Views: 127

Image title


According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2015, mortgage applications increased 25.5 percent from one week earlier.


The Market Composite Index, a measure of mortgage loan application volume, increased 25.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26 percent compared with the previous week. The Refinance Index increased 24 percent from the previous week. The seasonally adjusted Purchase Index increased 27 percent from one week earlier. The unadjusted Purchase Index increased 27 percent compared with the previous week and was 49 percent higher than the same week one year ago.


"The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change. The average loan size of applications in the weekly survey increased by 6.9 percent, driven by a 12.1 percent increase in the average size of refinances," said Lynn Fisher, MBA's Vice President of Research and Economics.The refinance share of mortgage activity decreased to 57.4 percent of total applications from 58.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications.The FHA share of total applications decreased to 12.7 percent from 13.8 percent the week prior. The VA share of total applications decreased to 9.2 percent from 10.3 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99 percent, the lowest level since May 2015, from 4.08 percent, with points increasing to 0.46 from 0.45 (including the origination fee) for 80 percent 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 $417,000) decreased to 3.89 percent, the lowest level since April 2015, from 3.96 percent, with points decreasing to 0.25 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent, the lowest level since May 2015, from 3.87 percent, with points increasing to 0.35 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.24 percent, the lowest level since May 2015, from 3.29 percent, with points decreasing to 0.38 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


The average contract interest rate for 5/1 ARMs increased to 2.96 percent from 2.95 percent, with points decreasing to 0.32 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


By The WPJ Staff

Blog author image

Bart Austin

"There is no substitute for experience!" Growing up on Long Island, N.Y., Bart learned many things from his mom, who was a real estate attorney. He worked as a buyer in retail sportswear in New York u....

Latest Blog Posts

Grrr The Fed Just Made It More Expensive To Buy A Home

Yesterday the Federal Reservehiked the benchmark interest rate a quarter of a point, from 1.75 percent to 2 percent. Interest rates are the highest they have been in 10 years!Buyer who need a

Read More

The Tax Difference In Second Homes

A principal residence and a second home have some similar benefits, but they have some key tax differences. A principal residence is the primary home where you live and a second home is used mainly

Read More

Would You Take 10000 Dollars Now Or 50000Dollars If Our Golden Knights Win The Cup

What would you do? Take a sure $10,000 now or roll the dice that our beloved Vegas Golden Knights will win the Stanley Cup and pocket $50,000 if they win or nothing if they lose?Last summer few

Read More

Finally Something FREE On The Las Vegas Strip YOGA

Yoga is the new "it" thing in Las Vegas (even though it's been around for centuries.) At goat yoga you can do downward dog with baby goats at a local park. You can try to do tree in one of the

Read More