Loan originators averted a holiday slump and managed to maintain the pace of new mortgage applications heading into Labor Day.
During the week ended Sept. 2, retail residential loan
applications ascended a seasonally adjusted 1 percent from a week earlier.
The activity was based on the Market Composite Index, which was mostly unchanged when there are no seasonal adjustments made.
The index, a measure of mortgage loan application volume, is included in the Weekly Mortgage Applications Survey from the Mortgage Bankers Association.
Refinance applications rose a seasonally adjusted 1 percent from the week ended Aug. 26. At 64.0 percent, refinance share was slightly wider than 63.5 percent in the previous report and much wider than 56.9 percent a year previous.
MBA reported that the Purchase Index increased 1 percent on a week-over-week basis. But when seasonal adjustments are excluded, purchase business fell 1 percent, though it was up 7 percent on a year-over-year basis.
Applications for mortgages insured by the Federal Housing Administration represented 9.5 percent of total activity. FHA share thinned from 9.7 percent a week earlier and 13.4 percent a year earlier.
Another
11.9 percent of applications were for loans guaranteed by the Department of Veterans Affairs. VA share was cut from 12.5 percent in the last report but widened from 10.8 percent in the same week last year.
Jumbo interest rates in MBA’s report were
2 basis points less than conforming rates. The jumbo-conforming spread was trimmed from 4 BPS the previous week and 7 BPS during the same seven-day period in 2015.
Just 4.3 percent of all applications were for adjustable-rate mortgages.
ARM share diminished from 4.5 percent in the prior report and 6.9 percent in the week ended Sept. 4, 2015.
