Although new mortgage applications slumped as 2016 began, government programs accounted for a bigger share of the overall market.
The Market Composite Index for the week ended Jan. 1 was down 27 percent from two weeks prior on a seasonally adjusted basis.
The index,
a measure of residential loan application volume, wasn’t published during the week between Christmas and New Year’s.
Reported on a weekly basis by the Mortgage Bankers Association,
the Market Composite Index is included in the trade group’s Weekly Mortgage Applications Survey.
Without any seasonal adjustment, overall activity dropped by half compared to the week ended
Dec. 18, 2015.
Applications for refinances slowed by 37 percent on a seasonally adjusted basis from two weeks earlier. Refinance share thinned to 55.4 percent from 56.1 percent one week earlier and 62.8 percent two weeks earlier.
Purchase activity was off just 15 percent from the previous report.
The bi-weekly decrease with purchase applications was 40 percent without any seasonal adjustments. But there was a 22 percent year-over-year improvement.
Applications for mortgages insured by the Federal Housing Administration accounted for 14.6 percent of all activity. FHA share was fatter than 13.8 percent seven days earlier and 12.9 percent 14 days earlier.
Another 12.9 percent of applications were for loans guaranteed by the Department of Veterans Affairs. VA share widened from 11.6 percent the prior week and
10.5 percent two weeks prior.
Adjustable-rate mortgages were utilized on 4.7 percent of all applications. ARM share
tumbled from 6.1 percent two week prior.
The jumbo-conforming spread was
a negative 11 basis points in MBA’s survey, narrower than 12 BPS two weeks earlier.
