US MBA Text: Mkt Composite +1.6%, Refis +2% December 7 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications rose 1.6 percent from one week earlier, according to

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

Survey for the week ending December 7, 2018. 

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

increased 1.6 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 1 percent compared with the previous

week. The Refinance Index increased 2 percent from the previous week. The

seasonally adjusted Purchase Index increased 3 percent from one week earlier.

The unadjusted Purchase Index decreased 2 percent compared with the previous

week and was 4 percent higher than the same week one year ago. 

     "Mortgage rates fell across the board last week, driven by a similar slide

in Treasuries. Trade fears dominated investors' concerns for another week, and

this was amplified by data released by the U.S. Commerce Department showing a

widening trade deficit," said Joel Kan, MBA's Associate Vice President of

Economic and Industry Forecasting. "The 30-year fixed mortgage rate decreased 12

basis points over the week back below 5 percent, representing the largest single

week drop since 2017." 

     Added Kan, "As a result of these recent rate declines, we saw another

weekly increase in refinance applications, along with a rise in the average

refinance loan size. Larger loans tend to react more readily for a given change

in mortgage rates. Meanwhile, purchase application activity also increased over

the week and was up more than three percent compared to a year ago." 

     The refinance share of mortgage activity increased to 41.5 percent of total

applications, the highest level since March 2018, from 40.4 percent the previous

week. The adjustable-rate mortgage (ARM) share of activity increased to 7.6

percent of total applications. 

     The FHA share of total applications increased to 10.8 percent from 10.2

percent the week prior. The VA share of total applications increased to 10.2

percent from 10.0 percent the week prior. The USDA share of total applications

increased to 0.7 percent from 0.6 percent the week prior. 

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

conforming loan balances ($453,100 or less) decreased to 4.96 percent, the

lowest level since September 2018, from 5.08 percent, with points increasing to

0.48 from 0.44 (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 4.80 percent, the

lowest level since September 2018, from 4.89 percent, with points increasing to

0.33 from 0.30 (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 decreased to 4.97 percent, the lowest level since September 2018,

from 5.05 percent, with points decreasing to 0.55 from 0.62 (including the

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

last week. 

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

decreased to 4.41 percent, the lowest level since September 2018, from 4.50

percent, with points decreasing to 0.44 from 0.60 (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 4.33 percent, with points increasing to 0.34 from 0.21 (including the

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

last week. 

     Please Note: MBA Offices will be closed Monday, December 24, 2018 and will

reopen on Wednesday, January 2, 2019. Results for the week ending December 21,

2018 will not be released on December 26, 2018. Release of the survey will

resume on Thursday, January 3, 2019 at 7:00 a.m. with results for the two weeks

prior. 

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

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