A nice improvement in mortgage applications was recorded from the week that included New Year’s. The gain came even as interest rates reached a 10-month high.
In the seven days that finished on Jan. 12, the Market Composite Index ascended more than a seasonally adjusted 4 percent from the preceding week.
But when seasonal factors are discounted, the index — a measure of retail residential loan applications — soared by nearly a third from the week ended Jan. 5.
The Weekly Mortgage Applications Survey from the Mortgage Bankers Association was the source of the data. The survey reportedly covers more than three-quarters of all applications.
Refinance applications rose 4 percent, and refinance share was trimmed to 52.2 percent from 52.9 percent. Refinance share was previously reported at
53.0 percent in the report from a year ago.
MBA reported that applications for loans to finance a home purchase were up a seasonally adjusted 3 percent. But without considering seasonal factors, purchase activity jumped 35 percent and was 7 percent stronger than in the week ended Jan. 13, 2017.
At 11.7 percent, applications for mortgages insured by the Federal Housing Administration made up more than the 11.1 percent share in the last report. Still, FHA share was thinner than 13.1 percent in the same-seven days last year.
The share of applications for loans guaranteed by the Department of Veterans Affairs declined to 10.7 percent from 11.4 percent
the prior week and 12.1 percent a year prior.
Applications for adjustable-rate mortgages accounted for 5.2 percent of the latest week’s volume. While ARM share widened from 5.0 percent a week earlier, it was more narrow than 5.7 percent a year earlier.
The average jumbo interest rate was 8 basis points less than conforming rates, which MBA said were the highest since March 2017. The spread widened from 7 BPS in the preceding week and 5 BPS the same week in 2017.
