Industry News

Refis push home loan apps higher

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Home loan applications continued higher last week, driven by a strong increase in refinancings, the Mortgage Bankers Association reported today. The market composite index, which measures total mortgage loan application volume, was up 2.4 percent on a seasonally adjusted basis from the week before, according to MBA. The greatest growth was seen in the index that tracks refinancings, which rose 4.6 percent from a week earlier, followed by a 0.9 percent gain in the purchase loan index. Interest rates crept higher last week, MBA reported, with the average contract interest rate on 30-year fixed-rate mortgages rising to 6.29 percent from 6.25 percent, the 15-year fixed rate jumping to 5.99 percent from 5.9 percent, and the rate on one-year adjustable-rate mortgages (ARMs) growing to 6.39 percent from 6.34 percent. Points, which are loan-processing fees expressed as a percent of the total loan amount, averaged 1.02 on the 30-year loans, 1.09 on the 15-year, and 0.95 on one-year ...