The results of the Mortgage Bankers Association’s latest weekly survey revealed a drop in mortgage application activity for the week ending November 24, 2017. According to the MBA’s press release, mortgage applications fell 3.1 percent from one week earlier. This includes an adjustment for the Thanksgiving holiday, which fell on November 23.
How does the survey work?
The MBA’s weekly mortgage application survey is used to determine the Market Composite Index, a measure of mortgage loan application volume. The MBA uses the index to gauge how many Americans are applying for home financing and how the volume of applications compares to previous weeks, months or even years.
The Market Composite Index consists of two main components. One component measures the volume of applications for purchase mortgages. This is called the Purchase Index. Another component measures refinancing application volume – the Refinance Index. This is different that the components that measure the share of purchase and refinancing applications, each of which pinpoint the percentage of those applications within the total applications.
The Market Composite Index also looks at the average contract interest rates broken down by mortgage type, including government-backed loans such as FHA and VA mortgages, as well as conventional, conforming, non-conforming, 30-year and 15-year mortgages.
The latest MBA weekly survey found average contract interest rates to remain unchanged for 30-year fixed rate mortgages with conforming loan balances ($424,100 or less) from the previous week.
For information on up-to-date rates for conventional, government, conforming or non-conforming mortgages, please contact our team directly. We offer free rate quotes and mortgage consultations simply by giving us a call or contacting us online.
Highlights of Latest Survey
The overall Market Composite Index for the week ending November 24 decreased 3.1 percent on a seasonally-adjusted basis from the previous week. On an unadjusted basis (i.e., not accounting for the Thanksgiving holiday and seasonal slowdown) the index decreased 34 percent from the previous week. (You can see how much the winter holiday affects the mortgage market.)
The seasonally-adjusted Purchase Index increased 2 percent from the week before to its highest level since September 2017. The unadjusted Purchase Index decreased 32 percent from the previous week and was 6 percent higher than it was for same week one year ago.
The Refinance Index decreased 8 percent from the week prior to its lowest level since January 2017.
The share of refinance mortgage activity fell to 48.7 percent of total applications from 49.9 percent the previous week.
The adjustable rate (ARM) share of mortgage activity decreased to 6.2 percent of applications from the previous week.
The share of FHA loans increased to 10.8 percent of total applications from 10.6 the previous week.
The VA share of mortgage applications increased to 11.0 percent from 10.7 percent the previous week.
The USDA share increased to 0.8 percent from 0.7 percent the previous week.
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