US MBA Text: Mkt Composite -2.5%, Refis -4% October 26 Wk

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

Association's Mortgage Applications Survey released Wednesday mornig:

     Mortgage applications decreased 2.5 percent from one week earlier,

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

Applications Survey for the week ending October 26, 2018. 

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

decreased 2.5 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 4 percent from the previous week. The

seasonally adjusted Purchase Index decreased 2 percent from one week earlier.

The unadjusted Purchase Index decreased 2 percent compared with the previous

week and was 0.4 percent lower than the same week one year ago. 

     "The 30-year fixed-rate mortgage held steady over the week, but total

applications decreased overall. Purchase applications inched backward from the

previous week, as well as compared to one year ago - the first year-over-year

decline in purchase activity since August," said Joel Kan, AVP of industry

surveys and forecasts. "Purchase applications may have been adversely impacted

by the recent uptick in rates and the significant stock market volatility we

have seen the past couple of weeks. Additionally, the ARM share of applications

increased to its highest level since 2017, but since this is a compositional

measure, it was driven by a greater decrease in applications for fixed-term

loans relative to the decrease in ARM applications." 

     The refinance share of mortgage activity decreased to 39.4 percent of total

applications from 39.8 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity increased to 7.6 percent of total applications, the

highest level since May 2017. 

     The FHA share of total applications increased to 10.3 percent from 10.1

percent the week prior. The VA share of total applications decreased to 9.8

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) remained unchanged at 5.11 percent,

with points decreasing to 0.50 from 0.52 (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 4.94 percent from 5.01

percent, with points remaining unchanged at 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 increased to 5.08 percent from 5.07 percent, with points increasing

to 0.62 from 0.61 (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

increased to 4.55 percent from 4.50 percent, with points decreasing to 0.51 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 5/1 ARMs decreased to 4.33 percent

from 4.47 percent, with points increasing to 0.42 from 0.37 (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

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