US MBA Text: Mkt Composite -0.1%, Refis -5% November 16 Wk

     WASHINGTON (MNI) - The following is the text of the Mortgage Bankers

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications decreased 0.1 percent from one week earlier,

according to data from the Mortgage Bankers Association's (MBA) Weekly Mortgage

Applications Survey for the week ending November 16, 2018. This week's results

do not include an adjustment for the Veterans' Day holiday. 

     The Market Composite Index, a measure of mortgage loan application volume,

decreased 0.1 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 3 percent compared with the previous

week. The Refinance Index decreased 5 percent from the previous week to its

lowest level since December 2000. The seasonally adjusted Purchase Index

increased 3 percent from one week earlier. The unadjusted Purchase Index

decreased 1 percent compared with the previous week and was 5 percent lower than

the same week one year ago. 

     "Treasury rates declined last week, as equity markets continued to see

large swings amidst investor concerns over global economic growth. As a result,

mortgage rates inched back across most loan types, including the 15-year

fixed-rate mortgage, 5/1 ARM, and 30-year jumbo mortgage rate. The 30-year

fixedrate mortgage also declined, stopping a run of six straight weekly

increases," said Joel Kan, MBA's Associate Vice President of Economic and

Industry Forecasting. "Mortgage applications saw mixed results last week.

Purchase applications increased to their highest level in five weeks, but

despite the pause in rates, refinance activity dropped again and remained at its

lowest level since 2000." 

     The refinance share of mortgage activity decreased to 38.5 percent of total

applications from 39.4 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 7.3 percent of total applications. 

     The FHA share of total applications increased to 10.7 percent from 10.6

percent the week prior. The VA share of total applications increased to 10.6

percent from 10.1 percent the week prior. The USDA share of total applications

remained unchanged at 0.7 percent from the week prior. 

     The average contract interest rate for 30-year fixed-rate mortgages with

conforming loan balances ($453,100 or less) decreased to 5.16 percent from 5.17

percent, with points decreasing to 0.48 from 0.55 (including the origination

fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate

decreased from last week. 

     The average contract interest rate for 30-year fixed-rate mortgages with

jumbo loan balances (greater than $453,100) decreased to 4.88 percent from 4.98

percent, with points increasing to 0.29 from 0.28(including the origination fee)

for 80 percent LTV loans. The effective rate decreased from last week. 

     The average contract interest rate for 30-year fixed-rate mortgages backed

by the FHA remained unchanged at 5.08 percent, with points increasing to 0.63

from 0.55 (including the origination fee) for 80 percent LTV loans. The

effective rate increased from last week. 

     The average contract interest rate for 15-year fixed-rate mortgages

decreased to 4.53 percent from 4.57 percent, with points decreasing to 0.51 from

0.56 (including the origination fee) for 80 percent LTV loans. The effective

rate decreased from last week. 

     The average contract interest rate for 5/1 ARMs decreased to 4.24 percent

from 4.45 percent, with points increasing to 0.51 from 0.31 (including the

origination fee) for 80 percent LTV loans. The effective rate decreased from

last week.

--MNI Washington Bureau; tel: +1 202-371-2121; email: kevin.kastner@marketnews.com

[TOPICS: MAUDS$,M$U$$$,MK$$$$,M$$MO$]