MBA: Mortgage Application Volume Surged 11.3%

Posted by Patrick Barnard on September 02, 2015 No Comments
Categories : Residential Mortgage

After posting only a 0.2% gain the previous week, mortgage application volume increased an impressive 11.3% during the week ended Aug. 28, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, volume increased 10% compared with the previous week.

Applications for refinances increased 17%, while applications for purchases increased 4%.

On an unadjusted basis, applications for purchases increased 2% compared with the previous week and increased 25% compared with the same week one year ago.

The refinance share of mortgage activity increased to 58.7% of total applications – up from 55.3% the previous week.

The jump in application volume – particularly for refinances – came despite the fact that mortgage rates were basically flat compared with the previous week.

‘Although mortgage rates were unchanged for the week, Treasury rates were down sharply early in the week due to the global stock market rout, and this led to a significant increase in application volume,’ explains Mike Fratantoni, chief economist for the MBA, in a release.

The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) was 4.08%, unchanged from the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.05%, up from 4.00% the previous week.

The average rate for a 30-year FRM backed by the Federal Housing Administration (FHA) was 3.87%, down from 3.90%.

The average rate for a 15-year FRM was 3.30%, down from 3.33%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.05%, up from 2.96%.

The ARM share of activity increased to 7.5% of total applications.

Looking at application volume by loan type, the FHA's share of total applications was 12.7%, down from 13.1% the week prior. The Veterans Affairs' share of total applications was 9.8%, down from 11.4% the week prior. The U.S. Department of Agriculture's share of total applications was 0.7%, down from 0.8% the week prior.

All rates are based on closings. The survey covers about 75% of the total residential mortgage market.

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