US MBA Text: Mkt Composite +5.5%, Refis +1% November 23 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications increased 5.5 percent from one week earlier,

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

Applications Survey for the week ending November 23, 2018. 

     This week's results include an adjustment for the Thanksgiving holiday. The

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

5.5 percent on a seasonally adjusted basis from one week earlier. On an

unadjusted basis, the Index decreased 29 percent compared with the previous

week. The Refinance Index increased 1 percent from the previous week. The

seasonally adjusted Purchase Index increased 9 percent from one week earlier.

The unadjusted Purchase Index decreased 28 percent compared with the previous

week and was 2 percent higher than the same week one year ago. 

     "After several weeks of market volatility, 30-year fixed mortgage rates

decreased four basis points to 5.12 percent last week. Homebuyers responded,

with purchase applications 1.7 percent higher than a year ago, and after

adjusting for the Thanksgiving holiday, they increased almost 9 percent from the

previous week," said Mike Fratantoni, MBA's Chief Economist. "The rise in

purchase activity was led by conventional purchase applications, which surged

almost 12 percent, while government purchases were essentially unchanged over

the week. This also pushed the average loan size for purchase applications

higher, which likely meant there were fewer first-time homebuyers in the market

last week." 

     Added Fratantoni, "Refinance activity increased slightly overall, driven by

conventional refinances, while government refinances decreased, as both FHA and

VA applications dropped over the past week." 

     The refinance share of mortgage activity decreased to 37.9 percent of total

applications from 38.5 percent the previous week. The adjustable-rate mortgage

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

     The FHA share of total applications decreased to 9.6 percent from 10.7

percent the week prior. The VA share of total applications decreased to 9.9

percent from 10.6 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) decreased to 5.12 percent from 5.16

percent, with points decreasing to 0.46 from 0.48 (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 $453,100) remained unchanged at 4.88 percent,

with points increasing to 0.31 from 0.29 (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 increased to 5.11 percent from 5.08 percent, with points remaining

unchanged at 0.63 (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 4.53 percent, with points remaining unchanged at 0.51

(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 increased to 4.29 percent

from 4.24 percent, with points decreasing to 0.42 from 0.51 (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$]