Mortgage applications took a turn for the better this week, reversing course and showing an increase in percentages.
Mortgage applications increased 4.2% from last week, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending August 17, 2018.
On an unadjusted basis, the Market Composite Index, a measure of loan application volume, increased 3% from the previous week.
The Refinance Index increased 6% from last week, while the unadjusted Purchase Index increased just 1% from last week but is 1% higher than the same week in 2017. The seasonally adjusted Purchase Index jumped 3% from one week prior.
The refinance share of mortgage activity rose slightly from last week’s 37.6% to 38.7% of applications, and the adjustable-rate mortgage share of activity increased to 6.5%, up from 6.2% the week before.
The Federal Housing Administration share of mortgage apps dipped from last week’s 10.4% to 10.2% and the Veterans Affairs’ share of applications decreased 0.1% from the previous week to 10.5%.
The Department of Agriculture share of apps fell slightly from 0.8% from the week prior to 0.7%.
The MBA reported mortgage interest rates for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) remained unchanged from last week’s 4.81%.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100) fell from 4.73% last week to 4.68% this week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA rose from 4.77% last week to 4.82% this week.
The average contract interest rate for 15-year fixed-rate mortgages declined from 4.27% last week to 4.25% this week.
The average contract interest rate for 5/1 ARMs decreased to 4% this week, falling from 4.06% last week.