MBA: Mortgage Application Volume Took Steep Dive Over The Holidays

Posted by Patrick Barnard on January 06, 2016 No Comments
Categories : Residential Mortgage

As is to be expected, mortgage application volume took a steep dive over the holidays, falling 27% on an adjusted basis during the two weeks ended Jan. 1, according to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey.

On an unadjusted basis, application volume decreased 50%. Applications for refinances decreased 37% while applications for purchases decreased 15%.

On an unadjusted basis, applications for purchases decreased 40% and were down 22% compared with the same week one year ago.

The refinance share of mortgage activity decreased to 55.4% of total applications from 56.1%.

Mortgage rates inched up slightly over the holidays. The average rate for a 30-year fixed-rate mortgage (FRM) with conforming loan balance ($417,000 or less) for the week ended Jan. 1 was 4.20%, up from 4.19% the previous week.

The average rate for a 30-year FRM with jumbo loan balance (greater than $417,000) was 4.09%, up from 4.07%.

The average rate for a 30-year fixed-rate mortgage backed by the Federal Housing Administration was 3.95%, down from 3.97%.

The average rate for a 15-year FRM was 3.47%, up from 3.42%.

The average rate for a 5/1 adjustable-rate mortgage (ARM) was 3.19%, up from 3.13%.

The ARM share of activity decreased to 4.7% of total applications.

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