US MBA Text: Mkt Composite -2.7%, Refis -5% January 18 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications decreased 2.7 percent from one week earlier,

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

Applications Survey for the week ending January 18, 2019. 

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

decreased 2.7 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 0.3 percent compared with the previous

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

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

The unadjusted Purchase Index increased 4 percent compared with the previous

week and was 13 percent higher than the same week one year ago. 

     "Mortgage application activity cooled off last week after two consecutive

weeks of sizeable increases. Both purchase and refinance applications saw

declines but remained at healthy levels, with the purchase index remaining close

to a nine-year high, and the refinance index hovering near its highest level

since last spring," said Joel Kan, MBA's Associate Vice President of Economic

and Industry Forecasting. "Reversing the recent downward trend, borrowers saw

increasing rates for most loan types last week, as better-than-expected

unemployment claims, easing trade tensions and stabilization in the equity

markets ultimately led to a rise in Treasury rates." 

     The refinance share of mortgage activity decreased to 44.5 percent of total

applications from 46.8 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 8.3 percent of total applications. 

     The FHA share of total applications decreased to 10.5 percent from 10.9

percent the week prior. The VA share of total applications decreased to 10.3

percent from 10.4 percent the week prior. The USDA share of total applications

decreased to 0.4 percent from 0.5 percent the week prior. 

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

conforming loan balances ($484,350 or less) increased to 4.75 percent from 4.74

percent, with points decreasing to 0.44 from 0.45 (including the origination

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

unchanged from last week. 

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

jumbo loan balances (greater than $484,350) increased to 4.59 percent from 4.53

percent, with points decreasing to 0.25 from 0.31 (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 4.82 percent from 4.76 percent, with points increasing

to 0.62 from 0.52 (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 4.12 percent from 4.13 percent, with points increasing to 0.53 from

0.45 (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 increased to 4.12 percent

from 4.08 percent, with points increasing to 0.42 from 0.32 (including the

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

last week.

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

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