WASHINGTON–Mortgage applications increased 0.8% from one week earlier, according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending Jan. 13, 2017.
The previous week's results included an adjustment for the New Year's holiday.
The Market Composite Index, a measure of mortgage loan application volume, increased 0.8% on a seasonally adjusted basis from one week earlier, according to the MBA. On an unadjusted basis, the Index increased 29% compared with the previous week. The Refinance Index increased 7% from the previous week. The seasonally adjusted Purchase Index decreased 5% from one week earlier. The unadjusted Purchase Index increased 25% compared with the previous week and was 1% lower than the same week one year ago, the MBA said.
The refinance share of mortgage activity increased to 53.0% of total applications from 51.2% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 5.7% of total applications.
Meanwhile, the MBA reported The FHA share of total applications increased to 13.1% from 11.7% the week prior. The VA share of total applications decreased to 12.1% from 12.8% the week prior. The USDA share of total applications remained unchanged at 0.9% from the week prior.
The MBA said data show the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,000 or less) decreased to its lowest level since December 2016, 4.27%, from 4.32%, with points decreasing to 0.39 from 0.41 (including the origination fee) for 80% loan-to-value ratio 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 $424,000) decreased to 4.22% from 4.27%, with points increasing to 0.36 from 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week, the MBA said.