A boost in weekly applications for loans to finance a home purchase was more than enough to offset a reduction in mortgage refinance activity.
There was virtually no change from the preceding week in the seasonally adjusted Market Composite Index for the week that ended on April 28.
But without seasonal adjustments, the index — a measure of retail residential loan application volume — moved up by 1 percent from a week prior.
The Mortgage Bankers Association included the index in its
Weekly Mortgage Applications Survey, which reportedly covers more than three-quarters of all applications.
MBA reported that applications for loans to refinance an existing mortgage fell 5 percent. Refinance share was reduced to 41.6 percent from 44.0 percent
and has significantly thinned from 52.9 percent in the week ended April 29, 2016.
Compared to the week ended April 21, 2017, applications for purchase financing climbed a seasonally adjusted 4 percent. Ignoring seasonal factors, purchase business increased 5 percent from a week earlier and a year earlier.
Applications for mortgages insured by the Federal Housing Administration accounted for 10.4 percent of all activity, more than a 10th in the previous report but much less than 13.5 percent the same week in 2016.
Another 10.8 percent of applications were for loans guaranteed by the Department of Veterans Affairs. VA share was trimmed from 10.9 percent in the report issued seven days earlier and reduced from 11.5 percent in the report from 12 months earlier.
Jumbo interest rates were 5 basis points less than conforming rates. The jumbo-conforming spread was no different than in the last report
and thinner than 8 BPS in the same week last year.
The trade group’s report had 8.4 percent of all applications being for adjustable-rate mortgages.
ARM share was more narrow than 8.7 percent in the last report and much fatter than 5.3 percent the same week last year.
