US MBA Text: Mkt Composite +2.0%, Refis +6% November 30 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications increased 2.0 percent from one week earlier,

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

Applications Survey for the week ending November 30, 2018. The results for the

week ending November 23, 2018, included an adjustment for the Thanksgiving

holiday. 

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

increased 2.0 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index increased 42 percent compared with the previous

week. The Refinance Index increased 6 percent from the previous week. The

seasonally adjusted Purchase Index increased 1 percent from one week earlier.

The unadjusted Purchase Index increased 36 percent compared with the previous

week and was 0.2 percent higher than the same week one year ago. 

     "Treasury rates continued to slide last week, driven mainly by concerns

over slowing global economic growth and U.S. and China trade uncertainty. The

30-year fixed-rate fell for the third week in a row to 5.08 percent and has

declined a total of nine basis points over this span," said Joel Kan, MBA's

Associate Vice President of Economic and Industry Forecasting. "Application

activity increased over the week for both purchase and refinance loans, and were

10 percent and 7 percent higher, respectively, than the week before the

Thanksgiving holiday. Additionally, we saw a decrease in the average loan size

for purchase applications to the lowest since December 2017 ($298,000 from

$313,000). This is perhaps an indication that there are fewer jumbo borrowers,

or maybe first-time buyers are having better success reaching the market as we

close out the year." 

     The refinance share of mortgage activity increased to 40.4 percent of total

applications from 37.9 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 7.4 percent of total applications. 

     The FHA share of total applications increased to 10.2 percent from 9.6

percent the week prior. The VA share of total applications increased to 10.0

percent from 9.9 percent the week prior. The USDA share of total applications

decreased to 0.6 percent from 0.7 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 5.08 percent from 5.12

percent, with points decreasing to 0.44 from 0.46 (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) increased to 4.89 percent from 4.88

percent, with points decreasing to 0.30 from 0.31 (including the origination

fee) for 80 percent LTV loans. The effective rate remained unchanged from last

week. 

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

by the FHA decreased to 5.05 percent from 5.11 percent, with points decreasing

to 0.62 from 0.63 (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 4.50 percent from 4.53 percent, with points increasing to 0.60 from

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

rate remained unchanged from last week. 

     The average contract interest rate for 5/1 ARMs increased to 4.33 percent

from 4.29 percent, with points decreasing to 0.21 from 0.42 (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$]