With government-insured activity leading the way, applications for home financing saw a week-over-week increase. Fifteen-year pricing weakened.
A 12 percent increase from the previous week was recorded for the Market Composite Index. The gain reflects adjustments for seasonal variations.
Without a seasonal adjustment, which included the Columbus Day holiday in the most-recent report, the Market Composite Index was up just one percent.
The Mortgage Bankers Association reported the index in its
Weekly Mortgage Applications Survey, which it says covers more than 75 percent of all retail residential mortgage applications.
“We expect that application volume will remain volatile over the next few weeks as the industry continues to implement TILA-RESPA integrated disclosures,” MBA Chief Economist Mike Fratantoni said in the report.
The Purchase Index leapt 16 percent from seven days earlier, MBA said, though the rise was just five percent with no adjustment.
Compared to the same week in 2014, the unadjusted Purchase Index was up nine percent.
A seasonally adjusted nine percent week-over-week gain was recorded for refinance applications.
Refinance share slipped to 59.5 percent from 61.2 percent in the trade group’s previous report.
Applications for mortgages insured by the Federal Housing Administration accounted for14.3 percent of the week’s activity. FHA share leapt from 12.6 percent in the week ended Oct. 14.
Adjustable-rate mortgages accounted for 6.9 percent of total applications. ARM share declined from 7.5 percent one week prior.
Applications for loans guaranteed by the Department of Veterans Affairs made up 12.7 percent of the week’s activity, widening from an 11.5 percent share in the last report.
The spread between 15- and 30-year mortgages was
72 BPS, more narrow than 79 BPS in the last report.
Jumbo mortgage rates averaged
eight basis points less than conforming rates. The jumbo-conforming spread thinned from a negative 10 BPS in the last report.
