US MBA Text: Mkt Composite -4.0%, Refis -3% November 2 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications decreased 4.0 percent from one week earlier,

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

Applications Survey for the week ending November 2, 2018. 

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

decreased 4.0 percent on a seasonally adjusted basis from one week earlier to

the lowest level since December 2014. On an unadjusted basis, the Index

decreased 2 percent compared with the previous week. The Refinance Index

decreased 3 percent from the previous week. The seasonally adjusted Purchase

Index decreased 5 percent from one week earlier to the lowest level since

November 2016. The unadjusted Purchase Index decreased 1 percent compared with

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

     "Rates increased slightly last week, as various job market indicators

showed a bounce back in job gains and an acceleration in wage growth in October.

The survey's 30-year fixed-rate, at 5.15 percent, was the highest since April

2010," said Joel Kan, MBA's associate vice president of economic and industry

forecasts. "Application activity decreased over the week for both purchase and

refinance applications, with the overall market index down to its lowest level

since December 2014. The purchase index declined to its lowest level since

November 2016, but remained only slightly below the same week a year ago. It's

evident that housing inventory shortages continue to impact prospective

homebuyers this fall." 

     The refinance share of mortgage activity decreased to 39.1 percent of total

applications from 39.4 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity increased to 7.8 percent of total applications. 

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

percent the week prior. The VA share of total applications increased to 10.1

percent from 9.8 percent the week prior. The USDA share of total applications

remained unchanged 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) increased to 5.15 percent from 5.11

percent, with points increasing to 0.51 from 0.50 (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 $453,100) increased to 4.97 percent from 4.94

percent, with points decreasing to 0.27 from 0.28 (including the origination

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

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

by the FHA increased to 5.15 percent from 5.08 percent, with points increasing

to 0.64 from 0.62 (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

remained unchanged at 4.55 percent, with points remaining unchanged at 0.51

(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 4.36 percent

from 4.33 percent, with points decreasing to 0.35 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$]