Applications for mortgage loans were up a seasonally adjusted 9.5 percent for the week ending Sept. 5, driven by a 15.4 percent jump in applications for refinancings, according to a weekly survey by the Mortgage Bankers Association.
Results of the MBA’s Weekly Mortgage Applications Survey, adjusted to account for the Labor Day holiday, showed a 6.4 percent increase in purchase loans from the week ending Aug. 29. A 14.4 percent increase in applications for conventional purchase loans was offset by an 8.7 percent drop in applications for government purchase loans, which are largely FHA-backed loans.
Premiums and minimum down-payment requirements for Federal Housing Administration loan guarantees are going up on Oct. 1, and seller-funded down-payment assistance will no longer be accepted by FHA unless Congress rescinds an impending ban (see Inman News story). The government purchase index jumped 19.9 percent during the week ending Aug. 29 — possibly reflecting borrowers’ attempts to obtain loans before the changes take effect.
The refinance share of mortgage activity last week increased to 36.3 percent of total applications from 34 percent the week before. The adjustable-rate mortgage (ARM) share of activity decreased from 6.6 percent to 6.4 percent.
The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.06 percent, from 6.39 percent, with points including the origination fee increasing to 1.02 from 1 for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.73 percent from 5.96 percent, with points including the origination fee decreasing to 0.98 from 1.03 for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 7 percent from 7.11 percent, with points including the origination fee decreasing to 0.3 from 0.35 for 80 percent LTV loans.
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