Mortgage Applications Increase in December

Mortgage applications increased 2.5% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending December 16, 2016.

The Refinance Index increased 3% from the previous week. The seasonally adjusted Purchase Index increased 3% from one week earlier. The unadjusted Purchase Index decreased 0.1% compared with the previous week and was 1 percent higher than the same week one year ago.

Average Mortgage Loan – $312,000

The refinance share of mortgage activity increased to 57.9% of total applications from 57.2& the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.5% of total applications, its highest level since February 2016. The average loan size for purchase applications reached its second-highest survey level at $312,000.

The FHA share of total applications decreased to 11.5% from 11.6% the week prior. The VA share of total applications increased to 12.0% from 11.9% the week prior. The USDA share of total applications decreased to 0.8% from 0.9% the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since May 2014, 4.41%, from 4.28%, with points increasing to 0.38 from 0.36 (including the origination fee) for 80% loan-to-value ratio (LTV) loans. The effective rate increased from last week.

4.36% Interest On 30-year Fixed-rate Mortgages 4.36%

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since April 2014, 4.36%, from 4.29%, with points increasing to 0.26 from 0.24 (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 Federal Housing Administration (FHA) increased to its highest level since April 2014, 4.15%, from 4.02%, with points decreasing to 0.29 from 0.33 (including the origination fee) for 80 percent Loan-to-value (LTV) loans.

3.64% Average Rate On 15-year Fixed-rage Mortgages

The average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since January 2014, 3.64%, from 3.52%, with points decreasing to 0.34 from 0.38 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

The average contract interest rate for 5/1 Adjustable-Rate Mortgages (ARM) increased to its highest level since September 2013, 3.45%, from 3.28%, with points decreasing to 0.26 from 0.28 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.