The month August showed a good kickstart for this month’s mortgage application activity. In a report released Wednesday, August 9, 2017, weekly mortgage applications gained 3.0 percent from the previous month.
The refinancing shares of activity also increased by almost 50 percent.
- On the seasonally adjusted basis, mortgage applications swung back up by 3 percent. On the unadjusted basis, it also gained 3 percent from a week prior.
- According to MBA, the purchase index on the unadjusted basis was higher by 0.3 percent from the previous week. Moreover, it was 7 percent higher than the same week a year ago. The seasonally adjusted purchase index gained 1 percent week-over-week.
- Also in an upswing was the share of adjustable-rate mortgages (ARM), at 6.8 percent of the total mortgage applications after a week.
Mortgage Applications for Government-Backed Loans Barely Changed
For mortgage loans backed by the US Department of Agriculture, total shares of applications still remained the same at 0.8 percent. Decreasing by 0.1 percent from the week prior was the Federal Housing Administration’s share of applications. From 10.3 percent, it ticked up to 10.2 percent. The total applications shares of the Veterans Affairs had increased to 10.7 percent from 10.1 percent over a week.
Conforming and Jumbo loans Rates flutter Above 4 Percent
On the different mortgage loan products, 30-year fixed-rate loans with conforming loan balances took an average contract interest rate of 4.14 percent. This is a drop from the previous week’s 4.17 percent. In the same manner, 30-year fixed-rate mortgages with jumbo loan balances took a 4.07 percent average contract interest rate, a decrease from the 4.11 percent a week ago.
This Mortgage Application Weekly Survey by the Mortgage Bankers Association ended August 4, 2017. This survey helps project the dynamic changes of the US mortgage market week after week.
The Mortgage Bankers Association (MBA) represents over 2,200 members from all facets of the real estate finance industry. It is the United States’ national association of mortgage bankers.