MBA: Applications For Purchases Increased 9% Labor Day Week

Posted by Patrick Barnard on September 14, 2016 No Comments
Categories : Residential Mortgage

Mortgage applications increased 4.2% on an adjusted basis during the week ended Sept. 9, with applications for refinances rising 2% and applications for purchases jumping an impressive 9%, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

This includes an adjustment for the Labor Day holiday.

On an unadjusted basis, total volume decreased 17% compared with the previous week. Applications for purchases decreased 15%, on an unadjusted basis, but increased 8% compared with the same week one year ago.

The refinance share of mortgage activity decreased to 62.9% of total applications. It was 64.0% the previous week.

Fixed mortgage rates edged back down. The average rate for 30-year, fixed-rate mortgage (FRM) was 3.67%, down from 3.68%, according to the MBA’s data, which is based on closings.

The average rate for a 30-year jumbo FRM was 3.64%, down from 3.66%.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.50%, down from 3.52%.

The average rate for a 15-year FRM was 2.97%, up from 2.96%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) remained unchanged at 2.87%.

The ARM share of activity increased to 4.6% of total applications.

Looking at the government-backed loans, applications for mortgages backed by the FHA represented 9.6% of all applications – up from 9.5% the week prior. The Veterans Affairs share of total applications was 12.0%, up from 11.9%. The U.S. Department of Agriculture share of applications was 0.7%, up from 0.6%.

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