MBA Data: Mortgage Applications Increase

Mortgage Application Data for the week ending Dec. 16, 2016

Good news hit this week for loan originators as the latest mortgage application data was released on Dec. 21.

The latest report from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey shows mortgage applications saw a 2.5 percent increase from the week prior, for the week ending Dec. 16. The Purchase index increased 3 percent (seasonally adjusted) from the week prior. On the refinancing side, the Refinance Index increased 3 percent from the week prior.

Overall, here’s how the mortgage application data broke down in terms of overall share of applications:

  • Refinance share increased to 57.9 percent of total applications (up from 57.2 percent)
  • The adjustable-rate mortgage share increased to 6.5 percent of total applications (highest level since February).

Data about special housing financing loans show (when compared to the week prior):

  • FHA share of applications decreased slightly to 11.5 percent
  • VA share increased slightly to 12 percent
  • USDA share increased to .8 percent.

Other key mortgage figures, include:

  • Average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to its highest level since May 2014, to 4.41 percent.
  • The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,000) increased to its highest level since April 2014, to 4.36 percent
  • Average contract interest rate for 30-year fixed-rate mortgages backed by the FHA increased to its highest level since April 2014 to 4.15 percent.
  • Average contract interest rate for 15-year fixed-rate mortgages increased to its highest level since January 2014, to 3.64 percent.
MBA Mortgage Origination Forecast

Just last week, the MBA cut its mortgage origination forecast 3.5 percent for Q1 2017.

The MBA reported the mortgage loan originations (for one-to-four family mortgages) is projected to reach $352 billion in Q1 2017. The December Mortgage Finance Forecast was released following the Fed rate increase announcement. In November, MBA had projected first-quarter mortgage originations would be closer to $365 billion.

For all of 2017, MBA has now predicted $1.576  trillion in loan origination volume; refinancing volume is anticipated to reach $140 billion in Q1. Purchase origination volume is projected to be $212 billion; 2016’s origination volume for is anticipated to be $1.891 trillion.