US MBA Text: Mkt Composite +23.5%, Refis +35% January 4 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications increased 23.5 percent from one week earlier,

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

Applications Survey for the week ending January 4, 2019. This week's results

include an adjustment for the New Year's Day holiday. 

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

increased 23.5 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index increased 68 percent compared with the previous

week. The Refinance Index increased 35 percent from the previous week. The

seasonally adjusted Purchase Index increased 17 percent from one week earlier.

The unadjusted Purchase Index increased 59 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 and applications rebounded

sharply, after what was a slower than usual holiday period. The 30-year

fixed-rate mortgage declined 10 basis points to 4.74 percent, the lowest since

April 2018, and other loan types saw rate decreases of between 9 and 20 basis

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

Forecasting. "This drop in rates spurred a flurry of refinance activity -

particularly for borrowers with larger loans - and pushed the average loan size

on refinance applications to the highest in the survey (at $339,800). The surge

in refinance activity also brought the refinance index to its highest level

since last July." 

     Added Kan, "Purchase applications had their strongest week in a month,

finishing over four percent higher than a year ago, as both conventional and

government purchase activity bounced back with solid gains after a sluggish

holiday season." 

     The refinance share of mortgage activity increased to its highest level

since February 2018, 45.8 percent of total applications, from 42.7 percent the

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

8.4 percent of total applications. The average loan size for refinance

applications reached a survey high at $339,800. 

     The FHA share of total applications increased to 10.3 percent from 10.0

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

highest level since March 2017, 11.6 percent, from 11.0 percent the week prior.

The USDA share of total applications remained unchanged at 0.6 percent from the

week prior. 

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

conforming loan balances ($484,350 or less) decreased to its lowest level since

April 2018, 4.74 percent, from 4.84 percent, with points increasing to 0.47 from

0.42 (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 $484,350) decreased to its lowest level since

February 2018, 4.52 percent, from 4.72 percent, with points decreasing to 0.28

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 its lowest level since April 2018, 4.70 percent, from

4.86 percent, with points decreasing to 0.47 from 0.54 (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 its lowest level since April 2018, 4.16 percent, from 4.25 percent,

with points decreasing to 0.35 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 its lowest

level since August 2018, 4.05 percent, from 4.16 percent, with points decreasing

to 0.32 from 0.34 (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$]