The mortgage rates, which are usually responsible for the rise or fall in mortgage applications, have remained stable for a few weeks now. Yet, mortgage apps decreased 1.1 percent from the week earlier according to MBA’s Weekly Mortgage Applications Survey.
The data indicated that the refinance share of mortgage activity decreased to 38.5 percent of total applications from 40.1 percent last week, touching its lowest level since September 2008. The refinance index decreased 5 percent from the previous week.
The Purchase index, however, increased 1 percent from the week earlier and on an unadjusted basis, it increased 2 percent from the prior week and 6 percent than the same week a year ago. Among purchase applications, the FHA share of total applications decreased to 10.3 percent from 10.4 percent in the prior week. The VA share of total applications increased slightly to 10.7 percent from 10.3 percent last week while the USDA share of total applications decreased slightly from 0.9 percent in the last week to 0.8 percent this week.
The adjustable-rate mortgage (ARM) share of activity also saw a decrease this week, falling to 7 percent of total applications.
Other highlights from the survey are as follows:
- The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell to 4.68 percent from 4.69 percent, with points increasing to 0.46 from 0.45 for 80 percent loan-to-value ratio (LTV) loans. The effective rate remained unchanged from last week.
- The effective rate for 30-year-fixed-rate-mortgages for jumbo loans increased from last week while its average contract interest rate remained unchanged at 4.55 percent, with points increasing to 0.37 from 0.33 for 80 percent LTV loans.
- While the effective rate for 15-year fixed-rate mortgages increased over last week, the contract interest rates for these loans reached 4.12 percent, its highest level since April 2011, from 4.07 percent, with points increasing to 0.51 from 0.46 for 80 percent LTV loans.
- Thirty-year fixed-rate mortgages backed by FHA saw a decrease in their contract interest rates as well as effective rates, with points increasing to 0.81 from 0.76 for 80 percent LTV loans. The effective rate decreased from last week.
- The average contract interest rate for 5/1 ARMs decreased to 3.83 percent from 3.93 percent, with points increasing to 0.68 from 0.45 for 80 percent LTV loans. The effective rate decreased from last week.