According to the Weekly Mortgage Applications Survey of Mortgage Bankers Association ending December 3, 2021, US mortgage applications increased by 2% from one week earlier. The market composite index, a measure of mortgage loan application volume increased by 2% on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the index increased by 45% compared with the previous week. The refinance index increased by 9% from the previous week. This was lower by 37% than the same week one year ago. The seasonally adjusted purchase index decreased by 5% from one week earlier. On the other hand, the unadjusted purchase index increased by 28% compared with the previous week. This was 8% lower than the same week one year ago.
Mortgage rates declined for the first time in a month, precept a pickup in refinancing, with government refinances increasing more than 20% over the week. On the other hand, the 30-year fixed mortgage rate and 15-year fixed mortgage rate are both beneath only one basis point. The FHA rate fell 7 basis points, driving the surge in government refinances. So the borrowers are continuing to act on this contingency. But if rates trend higher as MBA is forecasting, the window of assistance to refinance will continue to get smaller, said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. At this time the purchase market was slower as compared to last week, with applications decreasing after four consecutive increases.
At this time the purchase market was slower in comparison to the previous week, with applications decreasing after four consecutive increases. It is seen that the activity is still close to the highest level since March 2021, which is one of the positive signs as the year comes to an end. On the other hand, the purchase activity continues to be embarrassed by a lack of inventory, combined with rapid rates of home price acknowledgment and mortgage rates higher than in 2020. It is seen that the refinance share of mortgage activity increased to 63.9% of total applications from 59.4% last week. The adjustable-rate mortgage (ARM) share of activity lessens to 3% of the total applications.
The FHA share of total applications increased to 9.9% from 8.9% the priorweek. On the other hand, the VA share of total applications increased to 10.7% from 10 % the week prior. The USDA share of total applications remained unchanged from 0.5% the week prior. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) decreased to 3.30 % from 3.31%, with points decreasing to 0.39 from 0.43 (including the origination fee) for 80% loan to value ratio (LTV) loans. The effective rate depreciated from last week. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.33% from 3.27%, with points decreasing to 0.30 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate depreciatedfrom last week.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA depreciated to 3.35% from 3.42%, with points decreasing to 0.32 from 0.35 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. The average contract interest rate for 15-year fixed-rate mortgages decreased to 2.62% from 2.63%, with points remaining unchanged at 0.31 (including the origination fee) for 80% LTV loans. The effective rate decreased from last week. The average contract interest rate for 5/1 ARMs increased to 2.98% from 2.48%, with points decreasing to 0.21 from 0.27 (including the origination fee) for 80% LTV loans. The effective rate increased from last week.
