The Mortgage Bankers Association (MBA) Weekly Mortgage Application Survey
for the week ending July 21, 2017, shows mortgage applications holding
steady, with only a 0.4% increase over the previous week. However, for
the week ending July 14, mortgage applications secured by real property
rose 6.3% from the week earlier. This number represented an allocated
adjustment for Independence Day weekend.
The seasonally adjusted Purchase Index decreased by 2 percent over last
week, with the Refinance Index showing an increase of 3% over the previous
week’s survey, which posted a considerable uptick from a week earlier.
Last week’s survey showed the Market Composite Index, a measure of
mortgage loan application volume, increased 6.3% on a seasonally adjusted
basis from the previous week, and 33 percent on an unadjusted basis. The
data also showed an increase in both refinance and purchase originations,
with the Refinance Index posting a 13 percent increase over the previous
week, and the Purchase Index outperforming the past week by a whopping
27%. That increase also reflects a 7% rise from a year prior.
It appears that this week’s slight increase in applications will
continue, as rates drop slightly or remain steady. The 30-year fixed mortgage
rate decreased from 4.22% the previous week, to 4.17 percent. FHA-backed
mortgage rates declined to 4.05% from 4.10 percent a week earlier. Adjustable
rate mortgages also fell slightly, with 5/1 ARM rates dropping from 3.32%
to 3.29%. Jumbo mortgage loan rates (loans above $424,100) declined from
4.18 percent to 4.06 percent.
Additionally, USDA increased applications from 0.7% to 0.8% from the week
prior, with the Department of Veterans Affairs seeing a dip in applications,
with 10.5% of all originations specified as VA loans.
The survey data indicates that refinance mortgage activity led the week,
making up 46% of total applications, an increase of nearly 2 points over
the previous survey. Adjustable-rate mortgages also rose to 6.8% of mortgage
applications, as more creative mortgage products enter the marketplace.
The MBA survey covers approximately 75% of consumer residential mortgage
applications and is conducted each week. The study compiles data from
residential mortgage bankers, commercial banks, and credit unions.