Mortgage applications have rebounded, according to survey data released this morning by the MBA. Coming off a 2 percent decrease the week of August 25, applications jumped a seasonally adjusted 3.3 percent for the week ending September 1. Unadjusted, rates jumped 2 percent.
Interest rates on a 30-year, fixed-rate mortgage (with balances of $424,100 or less) hit their lowest point since November 2016, dipping to 4.06 percent from last week's 4.11 percent. Points also decreased, dropping from 0.43 to 0.38. Rates on 30-year, fixed-rate jumbo loans and 15-year, fixed-rate mortgages fell to their lowest point this year, too, decreasing from 3.96 percent and 3.34 percent, respectively. Points remained stable on jumbo balance loans at 0.20 but fell on 15-year mortgages, from 0.41 to 0.35.
Interest rates on 5/1 adjustable-rate mortgages dipped from 3.26 percent to 3.14 percent, and points decreased from 0.35 to 0.31. The effective rate dropped on all loan types—30-year, 15-year, fixed-rate, and adjustable-rate—over the week.
Overall purchase applications climbed 1 percent adjusted, but fell 1 percent unadjusted. Still, purchase apps remained 5 percent higher than the same week last year.
Refinance applications rose for the week, jumping 5 percent, as did refinances as a share of all mortgage activity. The total refi share increased from 49.4 percent last week to 50.9 percent this week. The proportion of adjustable-rate mortgages also climbed, rising from 6.9 to 7.2 percent.
FHA and VA shares both decreased over the week, dropping to 9.6 percent and 9.7 percent of all mortgage activity, respectively (from 9.7 percent and 10 percent). The share of USDA applications of all mortgage apps remained steady for the week.
To see the full results of the MBA Weekly Applications Survey, visit MBA.org. [1]