By ISAIAS PACHECO
The Mortgage Bankers Association weekly mortgage application survey has recorded an increase of 0.2% for the week of August 5.
On an unadjusted basis, the index decreased 0.3% compared with the previous week.
Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting said mortgage rates remained volatile last week – after drops in the previous two weeks.
Kan said mortgage rates ended up rising four basis points and mortgage applications were relatively flat, with a decline in purchase activity offset by an increase in refinance applications.
“The purchase market continues to experience a slowdown, despite the strong job market. Activity has now fallen in five of the last six weeks, as buyers remain on the sidelines due to still-challenging affordability conditions and doubts about the strength of the economy,” Kan said in a statement.
Key Findings Include:
-The FHA share of total applications increased to 12.1 percent from 11.9 percent the week prior. The VA share of total applications increased to 10.9 percent from 10.8 percent the week prior. The USDA share of total applications remained unchanged at 0.6 percent the week prior.
-The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.47 percent from 5.43 percent, with points increasing to 0.80 from 0.65 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate increased from last week.
-The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $647,200) increased to 5.09 percent from 5.06 percent, with points increasing to 0.59 from 0.36 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
-The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 5.35 percent from 5.39 percent, with points decreasing to 1.02 from 1.03 (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 remained at 4.74 percent, with points decreasing to 0.62 from 0.65 (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 4.60 percent from 4.55 percent, with points decreasing to 0.63 from 0.69 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.
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