Mortgage applications continued to rise over the last week, thanks to a rising tide of refinance applications, a new report from Mortgage Bankers Association shows.
According to the MBA’s Weekly Mortgage Applications Survey for the week ending Sept. 8, 2017, mortgage applications rose 9.9% from the previous week.
The previous report showed that refinance share of mortgage activity increased to its highest level since January 2017, making up 50.9% of total applications two weeks ago. This is slightly up from 49.4% in the previous week.
In this new report from the MBA, refinance applications continued to increase, albeit slightly.
The report showed that the refinance share of mortgage activity increased to 51% percent of total applications from 50.9% in the previous week.
The adjustable-rate mortgage share of activity fell to 6.7% of total applications.
Overall, the Market Composite Index, a measure of mortgage loan application volume, increased 9.9% on a seasonally adjusted basis from one week earlier.
On an unadjusted basis, the Index decreased 13% compared with the previous week. The Refinance Index increased 9% from the previous week. The seasonally adjusted Purchase Index increased 11% from one week earlier. The unadjusted Purchase Index decreased 13% compared with the previous week and was 7% higher than the same week one year ago.
The Federal Housing Administration’s share of total applications increased from 9.6% last week to 9.9% this week, while the Veterans Affairs’ share of total applications increased to 10.3% from 9.7% the week prior.
The Department of Agriculture’s share of total applications remained frozen at 0.7%.
The MBA report also shows that mortgage interest rates dropped.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($424,100 or less) fell again, to 4.03%, down from 4.06% in the previous week.
Conversely, the average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $424,100) increased slightly from 3.96% to 4%.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA fell again, from 3.98% to 3.94%.
The average contract interest rate for 15-year fixed-rate mortgages fell too, from 3.34% to 3.3%.
Lastly, the average contract interest rate for 5/1 ARMs increased from 3.14% to 3.17%