Mortgage applications felt the heat of last week’s rate increases and declined 0.2 percent according to MBA’s weekly Mortgage Application Survey. Data from the survey indicated that the Market Composite Index increased 1 percent from a week earlier on an unadjusted basis.
While the seasonally adjusted Purchase Index remained unchanged, it increased 1 percent on an unadjusted basis compared to the previous week and was 11 percent higher than the same period a year ago. The refinance index, however, decreasing 0.3 percent from the previous week.
According to the survey’s data, the refinance share of mortgage activity decreased to 37.2 percent of total applications from 37.6 percent in the previous week. This is the lowest level that the refinance index has declined since September 2008. The adjustable-rate mortgage (ARM) share of activity decreased to 6.5 percent of the total applications.
While the FHA and VA share of applications decreased to 10.2 percent compared with 10.6 percent in the prior week, and 10.1 percent compared to 10.4 percent in the prior week respectively, the USDA share of total applications remained unchanged at 0.8 percent from last week.
Here’s how the average contract interest rate for various loans performed during the week:
- The rate for 30-year fixed-rate mortgages with conforming loan balances ($453,100 or less) increased to 4.73 percent, its highest level since September 2013, from 4.66 percent. The effective rate increased from last week.
- For 30-year fixed-rate mortgages with jumbo loan balances (greater than $453,100), the rate increased to 4.64 percent, its highest level since January 2014, from 4.53 percent. The effective rate increased from last week.
- For FHA-backed 30-year fixed-rate mortgages increased to 4.71 percent from 4.70 percent. The effective rate increased from last week.
- The rate for 15-year fixed-rate mortgages increased to 4.13 percent, its highest level since April 2011, from 4.08 percent. The effective rate increased from last week.
- For 5/1 ARMs, the rate increased to 3.98 percent, its highest level since February 2011, from 3.94 percent. The effective rate increased from last week.