More prospective borrowers applied for residential loans in the latest week, and it was applications for refinances that led the week-over-week increase.
A more than seven percent gain from the prior week was reported for the seasonally adjusted Market Composite Index for the week ended Dec. 18.
Without any seasonal adjustment, the index,
a measure of mortgage loan application volume, increased by exactly seven percent from the previous report.
The Mortgage Bankers Association reported the index as part of its
Weekly Mortgage Applications Survey.
Refinance applications climbed 11 percent from the week ended Dec. 11 on a seasonally adjusted basis. The bigger gain reflected a widening refinance share — to 62.8 percent from 60.7 percent the prior week.
Applications for purchase financing rose four percent.
Without seasonal adjustments, the Purchase Index inched up two percent on a week-over-week basis and surged 37 percent on a year-over-year basis.
Applications for mortgages insured by the Federal Housing Administration made up a smaller portion of weekly activity, with FHA share falling to 12.9 percent from 14.0 percent in last week’s report.
The share of applications for loans guaranteed by the Department of Veterans Affairs
was also thinner, decreasing to 10.5 percent from 11.2 percent.
MBA reported that 6.1 percent of the latest activity was for adjustable rate mortgages. ARM share
was modestly wider than six percent seven days prior.
Interest rates on jumbo mortgages averaged 12 basis points less than on conforming loans. The jumbo-conforming spread was more narrow than a negative 13 BPS in the week-earlier report.
