US MBA Text: Mkt Composite +4.9%, Refis +10% October 19 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications rose 4.9 percent from one week earlier, according to

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

Survey for the week ending October 19, 2018. The previous week's results did not

include an adjustment for the Columbus Day holiday. 

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

increased 4.9 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index increased 5 percent compared with the previous

week. The Refinance Index increased 10 percent from the previous week. The

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

The unadjusted Purchase Index increased 2 percent compared with the previous

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

     "Mortgage application activity rebounded the week following the Columbus

Day holiday, but both purchase and refinance levels remained lower than where

they were two weeks ago," said Joel Kan, MBA AVP of economic and industry

forecasts. "The holiday impacted refinance applications more than purchases, as

refinances rebounded almost 10 percent. Meanwhile, purchase applications

increased two percent over the prior week but were still four percent lower than

two weeks ago - a sign that both the jump in mortgage rates and tight inventory

continue to hold back application activity. Mortgage rates increased over the

week for most loan types, with most rates remaining at seven-year highs." 

     The refinance share of mortgage activity increased to 39.8 percent of total

applications from 38.1 percent the previous week. The adjustable-rate mortgage

(ARM) share of activity decreased to 7.0 percent of total applications. 

     The FHA share of total applications decreased to 10.1 percent from 10.4

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

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

decreased to 0.7 percent from 0.8 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 its highest level since

February 2011, 5.11 percent from 5.10 percent, with points decreasing to 0.52

from 0.55 (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 5.01 percent from 4.98

percent, with points decreasing to 0.28 from 0.34 (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 5.07 percent from 4.99 percent, with points decreasing

to 0.61 from 0.69 (including the origination fee) for 80 percent LTV loans. The

effective rate remained unchanged from last week. 

     The average contract interest rate for 15-year fixed-rate mortgages

remained unchanged at 4.50 percent, with points increasing to 0.55 from 0.54

(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 its highest level since the

series began in 2011, 4.47 percent from 4.34 percent, with points increasing to

0.37 from 0.35 (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

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