US MORTGAGE APPLICATIONS SPIKE 25 PERCENT IN ONE WEEK

Dated: 10/11/2015

Views: 130

Image title


According to the Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey for the week ending October 2, 2015, mortgage applications increased 25.5 percent from one week earlier.


The Market Composite Index, a measure of mortgage loan application volume, increased 25.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 26 percent compared with the previous week. The Refinance Index increased 24 percent from the previous week. The seasonally adjusted Purchase Index increased 27 percent from one week earlier. The unadjusted Purchase Index increased 27 percent compared with the previous week and was 49 percent higher than the same week one year ago.


"The number of applications for purchase and refinance mortgages soared last week due both to renewed rate volatility and as many applications were filed prior to the TILA-RESPA regulatory change. The average loan size of applications in the weekly survey increased by 6.9 percent, driven by a 12.1 percent increase in the average size of refinances," said Lynn Fisher, MBA's Vice President of Research and Economics.The refinance share of mortgage activity decreased to 57.4 percent of total applications from 58.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6 percent of total applications.The FHA share of total applications decreased to 12.7 percent from 13.8 percent the week prior. The VA share of total applications decreased to 9.2 percent from 10.3 percent the week prior. The USDA share of total applications remained unchanged from 0.7 percent the week prior.


The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) decreased to 3.99 percent, the lowest level since May 2015, from 4.08 percent, with points increasing to 0.46 from 0.45 (including the origination fee) for 80 percent loan-to-value ratio (LTV) 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 $417,000) decreased to 3.89 percent, the lowest level since April 2015, from 3.96 percent, with points decreasing to 0.25 from 0.35 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 3.80 percent, the lowest level since May 2015, from 3.87 percent, with points increasing to 0.35 from 0.34 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.24 percent, the lowest level since May 2015, from 3.29 percent, with points decreasing to 0.38 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


The average contract interest rate for 5/1 ARMs increased to 2.96 percent from 2.95 percent, with points decreasing to 0.32 from 0.41 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.


By The WPJ Staff

Blog author image

Bart Austin

"There is no substitute for experience!" Growing up on Long Island, N.Y., Bart learned many things from his mom, who was a real estate attorney. He worked as a buyer in retail sportswear in New York u....

Latest Blog Posts

Want To Meet The Courageous Parkland Florida Kids Here In Las Vegas

The Marjorie Stoneman Douglas High School's survivor's March for our Lives Road Trip hits Las Vegas tonight. You know those Parkland, Florida kids. They are the high schoolers 

Read More

Hot Yoga Happens Outside At The Neon Museum Boneyard

Most hot yoga classes are taught in studios with the heat cranked up. The Neon Museum came up with a novel idea: let the sun do the heating! We live in Las Vegas!!!!!Eileen Lorraine leads a 60

Read More

A Word Homeowners Need To Understand

Acquisition Debt is the amount of money borrowed used to buy, build or improve a principal residence or second home. Under the new tax law, mortgages taken after 12/14/17 are limited to a

Read More

Las Vegas Real Estate Market Report July 6 2018

Las Vegas Real Estate Market Report July 6 2018The amount of Las Vegas homes for sale that do not have contracts on them is about 4,800 homes.There are about 4,400 homes that already

Read More