This story was originally published in Builder.
The Market Composite Index, a measure of mortgage loan application volume, fell by 3.0 percent on a seasonally-adjusted basis from one week earlier for the week ending Aug. 3, according to the Mortgage Bankers Association’s latest Weekly Mortgage Applications Survey. This week marks the Index’s lowest level since January 2016.
The Index also fell by 3.0 percent on an unadjusted basis. The Refinance Index fell by 5 percent over the same period, down to its lowest level since December 2000, and both the seasonally adjusted and the unadjusted Purchase Index fell by 2 percent.
The refinance share of mortgage activity fell to 36.6 percent of total applications, down from 37.1 percent the previous week. The adjustable-rate mortgage (ARM) share of activity fell to 6.3 percent of total applications. The FHA share remained unchanged at 10.4 percent, the VA share rose to 10.6 percent from 10.5 percent, and the USDA share remained unchanged at 0.8 percent.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged at 4.84 percent. Points for 80 percent loan-to-value ratio (LTV) loans remained unchanged at 0.45. (All 80 percent LTV loan reports include the origination fee.) The effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) fell to 4.74 percent from 4.76 percent. Points for 80 percent LTV loans rose to 0.39 from 0.37, and the effective rate remained unchanged from last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose to 4.83 percent from 4.78 percent. Points for 80 percent LTV loans rose to 0.76 from 0.74, and the effective rate increased from last week.
The average contract interest rate for 15-year fixed-rate mortgages fell to 4.26 percent from 4.29 percent. Points for 80 percent LTV loans fell to 0.48 from 0.53, and the effective rate decreased from last week.
The average contract interest rate for 5/1 ARMs fell to 4.07 percent from 4.17 percent. Points for 80 percent LTV loans rose to 0.42 from 0.32, and the effective rate decreased from last week.
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