MBA: Mortgage Application Volume Jumped 2.9%, Driven By Refis

Posted by Patrick Barnard on October 05, 2016 No Comments
Categories : Residential Mortgage

After decreasing the previous two weeks, total mortgage application volume increased 2.9% on an adjusted basis during the week ended Sept. 30, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.

Applications for refinances increased 5.0%, while applications for purchases decreased 0.1% from one week earlier.

On an unadjusted basis, total volume increased 3.0%. Applications for purchases decreased 0.2% compared with the previous week and decreased 14% compared with the same week one year earlier.

The refinance share of mortgage activity increased to 63.8% of total applications from 62.7% the previous week.

The increase in applications for refinances was due, in part, to lower rates. The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.62%, down from 3.66%.

The average rate for a 30-year jumbo FRM was 3.60%, down from 3.64%.

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 2.93%, down from 2.95%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) remained unchanged at 2.92%.

The ARM share of activity increased to 4.5% of total applications.

Looking at the government-backed loans, applications for mortgages backed by the FHA represented about 10.0% of all applications – down from 10.2% the week prior. The Veterans Affairs share of total applications was 11.4%, down from 11.9%. The U.S. Department of Agriculture share of total applications was 0.7%, up from 0.6% the week prior.

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