US MBA Text: Mkt Composite -5.8%, Refis -2% December 14 Wk

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

Association's Mortgage Applications Survey released Wednesday morning:

     Mortgage applications decreased 5.8 percent from one week earlier,

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

Applications Survey for the week ending December 14, 2018.

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

decreased 5.8 percent on a seasonally adjusted basis from one week earlier. On

an unadjusted basis, the Index decreased 7 percent compared with the previous

week. The Refinance Index decreased 2 percent from the previous week. The

seasonally adjusted Purchase Index decreased 7 percent from one week earlier.

The unadjusted Purchase Index decreased 10 percent compared with the previous

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

     "Despite mortgage rates falling across the board last week to their lowest

levels in three months, mortgage applications also declined, as more potential

borrowers likely stayed away because of ongoing financial market volatility and

economic uncertainty," Joel Kan, MBA's Associate Vice President of Economic and

Industry Forecasting. "Purchase applications decreased almost seven percent over

the week and refinances decreased around two percent, led by a larger decline in

government refinances compared to conventional refinances." 

     Added Kan, "With rates continuing to slide lower, refinance borrowers with

larger loan balances seemed more apt to take action. The average loan balance

for refinance loans increased to its highest level since September 2017." 

     The refinance share of mortgage activity increased to 43.5 percent of total

applications, its highest level since February 2018, from 41.5 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 10.4 percent from 10.8

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

percent from 10.2 percent the week prior. The USDA share of total applications

decreased to 0.6 percent 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 its lowest level since

September 2018, 4.94 percent, from 4.96 percent, with points decreasing to 0.43

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) decreased to its lowest level since

September 2018, 4.74 percent, from 4.80 percent, with points decreasing to 0.26

from 0.33 (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 September 2018, 4.95 percent,

from 4.97 percent, with points decreasing to 0.51 from 0.55 (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 September 2018, 4.37 percent, from 4.41

percent, with points decreasing to 0.37 from 0.44 (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 September 2018, 4.17 percent, from 4.24 percent, with points

increasing to 0.42 from 0.34 (including the origination fee) for 80 percent LTV

loans. The effective rate decreased from last week. 

     Please Note: MBA Offices will be closed Monday, December 24, 2018 and will

reopen on Wednesday, January 2, 2019. Results for the week ending December 21,

2018 will not be released on December 26, 2018. Release of the survey will

resume on Thursday, January 3, 2019 at 7:00 a.m. with results for the two weeks

prior.

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

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