view in browser
Mortgage Applications Continue Early-Year Surge

Robinson, Matt
Mortgage applications, boosted by stable low interest rates, surged for a second straight week to start the new year, the Mortgage Bankers Association reported this morning in its Weekly Applications Survey for the week ending Jan. 11.

The Market Composite Index increased by 15.2 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased by 45 percent compared to the previous week. 

The Refinance Index increased by 15 percent from the previous week. The refinance share of mortgage activity remained unchanged at 82 percent of total applications from the previous week.

The seasonally adjusted Purchase Index increased by 13 percent from one week earlier to its highest level since April 2011. The unadjusted Purchase Index increased by 47 percent compared to the previous week and was 5 percent higher than the same week one year ago.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) remained unchanged at 3.61 percent, with points decreasing to 0.38 from 0.41 (including the origination fee) for 80 percent 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 $417,500) increased to 3.88 percent from 3.78 percent, with points unchanged at 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to 3.39 percent from 3.35 percent, with points decreasing to 0.58 from 0.69 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 15-year fixed-rate mortgages remained unchanged at 2.88 percent, with points decreasing to 0.27 from 0.39 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 adjustable-rate mortgages increased to 2.66 percent from 2.64 percent, with points decreasing to 0.34 from 0.37 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The ARM share of activity increased to 3 percent of total applications.

The survey covers more than 75 percent of all U.S. retail and consumer direct residential mortgage applications and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts.