US MBA Text: Mkt Composite -3.0%, Refis -6% January 25 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications decreased 3.0 percent from one week earlier,

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

Applications Survey for the week ending January 25, 2019. This week's results

include an adjustment for the Martin Luther King Jr. Day holiday. 

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

decreased 3.0 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 10 percent compared with the previous

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

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

The unadjusted Purchase Index decreased 6 percent compared with the previous

week and was 7 percent lower than the same week one year ago. 

     "Mortgage applications for purchase and refinances were lower over the past

week, as rates nudged higher," said Joel Kan, MBA's Associate Vice President of

Industry Surveys and Forecasts. "After two weeks of decreases, the purchase

index still remained roughly 6 percent above its long-run average, which is good

news with the spring buying and selling season almost underway. Despite ongoing

supply and affordability constraints, the healthy job market and underlying

demographic fundamentals both point to gradual purchase growth in the coming

months." 

     Added Kan, "Refinance activity had seen a small resurgence in the past few

weeks, but there still remains only a small share of borrowers left to gain from

rates at the current levels." 

     The refinance share of mortgage activity decreased to 42.0 percent of total

applications from 44.5 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 7.9 percent of total applications. 

     The FHA share of total applications remained unchanged from 10.5 percent

the week prior. The VA share of total applications increased to 10.7 percent

from 10.3 percent the week prior. The USDA share of total applications remained

unchanged from 0.4 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 4.76 percent from 4.75

percent, with points increasing to 0.47 from 0.44 (including the origination

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

increased from last week. 

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

jumbo loan balances (greater than $484,350) increased to 4.60 percent from 4.59

percent, with points decreasing to 0.24 from 0.25 (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 4.77 percent from 4.82 percent, with points decreasing

to 0.58 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

increased to 4.16 percent from 4.12 percent, with points decreasing to 0.46 from

0.53 (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 4.14 percent

from 4.12 percent, with points decreasing to 0.37 from 0.42 (including the

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

from last week.

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

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