Mortgage Applications raised up to 14.2 Percent in U.S. There was new data information -post-Brexit- from the Mortgage Bankers Association's Weekly Mortgage Applications Survey.
The data shows :
- The Market Composite Index increased 14.2 percent, on an unadjusted basis.
- The Index increased 14 percent compared with the previous week.
- The Refinance Index increased 21 percent.
- The seasonally adjusted Purchase Index increased 4 percent.
- The unadjusted Purchase Index increased 4 percent.
Mike Fratantoni, MBA's Chief Economist, said: "Interest rates continued to drop last week as markets
assessed the impact of Brexit, downgrading the likelihood of additional rate
hikes by the Fed, and mortgage rates for 30 year conforming loans dropped to their lowest level in over 3 years. In response, refinance application volume jumped almost 21 percent last week to its highest level since January 2015."
• The refinance share of mortgage activity increased to 61.6 percent of total applications ,from 58.1 percent the previous week.
• The adjustablerate mortgage (ARM) share of activity decreased to 5.6 percent of total applications.
• The FHA share of total applications decreased to 9.5 percent from 10.6 percent the week prior.
• The VA share of total applications increased to 12.8 percent from 12.2 percent the week prior.
• The USDA share of total applications decreased to 0.6 percent from 0.7 percent the week prior.
And as for the average contract interest rate for 30 year fixed rate mortgages:
• Conforming loan balances decreased to its lowest level since May 2013, 3.66 percent, from 3.75 percent, with points decreasing to 0.32 from 0.36 for 80 percent loantovalue ratio (LTV) loans.
• Jumbo loan balances decreased to its lowest level since January 2011, 3.67 percent, from 3.74 percent, with points decreasing to 0.24 from 0.34 for 80 percent LTV loans.
• By the FHA decreased to its lowest level since May 2013, 3.56 percent, from 3.61 percent, with points decreasing to 0.31 from 0.37 for 80 percent LTV loans.