As overall applications for home loans slowed on a week-over-week basis, the share that were for government mortgage programs was more narrow.
The number of applications completed for new
mortgages in the week ended Aug. 25 descended by a seasonally adjusted 2 percent from the previous week.
That was based on the Market Composite Index, a
measure of retail residential loan application volume that was down 4 percent without seasonal adjustments.
The Mortgage Bankers Association reported the index as part of its
Weekly Mortgage Applications Survey. More than three-quarters of all applications are reportedly covered by the survey.
Refinance activity fell 2 percent from the week ended Aug. 18. Refinance applications represented 49.4 percent of total volume, widening from 48.7 percent the preceding week
but slashed from 63.5 percent the same seven days last year.
A seasonally adjusted 3 percent week-over-week reduction was recorded for purchase-money applications.
Foregoing seasonal factors, applications for loans to finance home purchases declined 5 percent from the last report, though they strengthened 4 percent from the week ended Aug. 26, 2016.
At 9.7 percent, the share of applications for mortgages insured by the Federal Housing Administration was more narrow than 10.1 percent in last week’s report but no different than last year’s report.
Also thinning was the share of applications for loans guaranteed by the Department of Veterans Affairs — to 10.0 percent from 10.2 percent one week prior and 12.5 percent one year prior.
The share of applications for adjustable-rate mortgages widened to 6.9 percent from
6.4 percent a week earlier and 4.5 percent a year earlier.
Interest rates on jumbo mortgage applications were
11 basis points lower than conforming rates. The previous week, the jumbo-conforming spread was a negative 13 BPS, while it was a negative 4 BPS in the same seven days during 2016.
